New Delhi— India’s defence production is expected to grow more than six-fold to ₹8.8 lakh crore by 2047, up from ₹1.46 lakh crore in 2024–25, according to a report released by the Confederation of Indian Industry (CII) in collaboration with KPMG India. The report, titled “Atmanirbhar, Agrani, and Atulya Bharat 2047,” was unveiled at the CII Annual Business Summit and outlines an ambitious roadmap for India’s defence sector as part of its broader goal to become a developed nation by its centenary year of independence.
The country’s annual defence budget is projected to rise nearly five times, from the current ₹6.81 lakh crore allocated for FY2025–26 to ₹31.7 lakh crore in 2047. Defence exports are also expected to witness a dramatic expansion, increasing nearly twelve-fold from ₹24,000 crore in 2024–25 to ₹2.8 lakh crore by 2047. The report estimates India’s total defence expenditure will grow to 4.5 percent of GDP by 2047, up from the current 2 percent.
In pursuit of next-generation military capabilities, the share of the defence budget allocated to research and development is anticipated to double from the current 4 percent to between 8 and 10 percent. This increase will support the development of cutting-edge technologies and position India as a key player in the global defence ecosystem.
Despite this positive outlook, the report highlights several challenges, including the need for deeper public-private collaboration, incentives to encourage private sector participation in defence manufacturing, and persistent obstacles related to intellectual property rights and technology transfer from foreign partners. It emphasizes the importance of strategic planning, increased funding, streamlined procedures, and robust policy frameworks to overcome these barriers and accelerate self-reliance.
To guide this transformation, the report sets out key strategic milestones. By 2032, India aims to enhance its self-reliance in defence production by developing critical technologies domestically and reducing dependency on foreign suppliers. By 2038, the country aspires to become one of the world’s top five exporters of high-quality defence equipment by building global partnerships, meeting international standards, and aggressively marketing Indian defence products abroad. By 2045, the goal is to emerge as a global leader in developing and deploying advanced niche technologies across the defence sector, driven by stronger collaboration among industry, academia, and government, along with increased investments in future-oriented R&D.
The report concludes that with sustained commitment to innovation, strategic investment, and collaborative development, India can transform its defence ambitions into tangible global leadership by 2047. (Source: IANS)
