India's defence manufacturing is expected to see a stellar growth, rising more than six times to ₹8.8 lakh crore by 2047 from ₹1.46 lakh crore for the fiscal year 2024–25, as per a new report jointly authored by the Confederation of Indian Industry (CII) and KPMG India.
The nation’s annual defence budget is also set for a substantial increase, potentially rising to ₹31.7 lakh crore in 2047, compared to the current ₹6.81 lakh crore earmarked for 2025–26.
Titled “Atmanirbhar, Agrani, and Atulya Bharat 2047,” the report was unveiled during the CII’s annual business summit. It forecasts India’s defence exports will soar nearly 12-fold, reaching ₹2.8 lakh crore by 2047, up from ₹24,000 crore in 2024–25.
As per the report, India's overall defence expenditure may be 4.5% of the GDP in 2047, a significant increase from the current 2%. Expenditure on research and development (R&D) will also rise substantially, with its proportion in the defence budget doubling to 8–10% from the existing 4%, as India looks to develop next-generation military technologies.
The report admits that although India's aspiration to be a developed country with a healthy defence ecosystem by 2047 is a tall order, there are challenges that need to be overcome. Top of the list is the requirement for more intense public-private partnerships and policy incentives to tempt private companies to get into and continue to operate in the defence manufacturing sector.
It also identifies issues like intellectual property rights and technology-transfer constraints in collaborations with overseas firms. Countering these, the report says, will need strategic efforts, more funding, easier processes, a robust policy framework, and a thrust for innovation through cooperation among industry actors, academia, and government.
In laying out India's journey to emerging as a leading power in international defence, the report spells out a number of "strategic vectors" with stated objectives and timelines.
By 2032, the emphasis is on developing significant self-reliance through the focus on acquiring critical technologies and curbing dependence on imports. This involves enhancing indigenous R&D and manufacturing capacities.
India plans to become one of the world's top five premium defence equipment and technology exporters by 2038. This will entail developing global partnerships, harmonizing with international standards, and aggressively promoting Indian defence goods overseas.
By 2045, India's aim is to emerge as a world leader in niche and emerging defence technologies. This plan encompasses extensive collaboration across industries and large investment in cutting-edge R&D projects.
The report concludes that through abiding by these strategic directions, India can effectively convert its defence aspirations into concrete global leadership.
Read also| Five prototypes of AMCA to be developed before series production, Says Rajnath Singh
