India's defence production projected to jump 6-fold to Rs 8.8 lakh crore in 2047

New Delhi, May 30 (IANS) The country’s defence production is expected to surge over six-fold to Rs 8.8 lakh crore in 2047 from Rs 1.46 lakh crore in 2024-25, according to a report compiled by the Confederation of Indian Industry (CII) and KPMG India.

India’s annual defence budget could increase around five-fold to Rs 31.7 lakh crore in 2047, from Rs 6.81 lakh crore currently allocated for financial year 2025-26.

The report — titled “Atmanirbhar, Agrani, and Atulya Bharat 2047” — released at the CII annual business summit here, estimates India’s defence exports to rise to Rs 2.8 lakh crore in 2047, which represents a nearly 12-fold jump compared to the corresponding figure of Rs 24,000 crore for 2024-25.

The report pegs the country’s total defence expenditure at 4.5 per cnet of GDP for 2047, up from 2 per cent of GDP at present.

The allocation for R&D (research and development) in the defence budget is also expected to from 4 per cent at present to 8-10 per cent as the country pursues the development of cutting-edge technology for military hardware.

The report observes that achieving the vision of India as a developed nation by 2047 with a strengthened defence sector, faces some challenges. However, promoting robust public-private partnerships is necessary and incentives are required to encourage the private sector enter and sustain in the defence manufacturing domain.

“Intellectual property (IP) rights and technology-transfer issues with foreign collaborators also present obstacles in achieving self-reliance. Addressing these challenges requires strategic planning, increased budget allocations, streamlined procedures, robust policy frameworks, and fostering a culture of innovation and collaboration between the public and private sectors,” the report states.

Highlighting India's aspirations to emerge as a leading nation in the global defence hierarchy, the report identifies “strategic vectors” with specific timelines to achieve this goal.

The vectors include achieving enhanced self-reliance in defence production and capabilities by 2032, by targeting critical areas for comprehensive indigenous development, reducing dependence on foreign suppliers, and fostering innovation through domestic R&D and manufacturing excellence.

The report further states that by 2038, India should aim to become one of the top-five global exporters of high-quality defence equipment and technology by expanding international partnerships, meeting global standards, and vigorously promoting defence products in international markets.

It fixes a 2045 target for India to become a world leader in developing and deploying cutting-edge niche technologies across the defence sector, by encouraging collaboration between industry, academia, and government, and driving substantial investments in futuristic R&D.

By committing to these vectors, India can turn its aspirations into reality, the report added.

--IANS

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