Sectoral panel pitches for $150 billion local defence production by 2047

India should aim at raising domestic defence production to $150 billion and bring in $30 billion in exports per year by 2047, a key group of top bureaucrats has recommended, even as the Ukraine crisis has sparked a debate on India's huge dependency on Russia in the sector.

In a presentation made to the Union cabinet secretary in late February, a sectoral group of secretaries (SGOS) identified defence manufacturing as a key category to capitalise on India's potential and develop it as a manufacturing hub by 2047 with a 25% share in the GDP.

Defence manufacturing, pharmaceuticals and biotechnology, semiconductors, capital goods, and machine tools are among the top categories identified by the SGOS for a major ramp-up over the next 25 years.


Prime Minister Narendra Modi had recently said India must aim for new defence-related innovations developed domestically to truly surprise the adversary. The wheels for greater 'atmanirbharta' in the defence sector have got moving.

In 2020-21, 64% of India's budgetary outlay for defence went towards indigenous options. A 68% target has been identified for next year with service-wise action plans to reduce the import dependency. India also recently inked a $375-million deal with the Philippines for export of the Brahmos missile system.

SGOS - comprising top officials from the ministries of external affairs, commerce, heavy industries, steel, textiles, MSME, labour and employment, tourism, pharmaceuticals, and chemicals and petrochemicals, besides the Department for Promotion of Industry and Internal Trade and the Central Board of Indirect Taxes & Customs - has identified 25 year targets for India's commerce and industry growth.

While it has set a target of $150 billion for defence manufacturing by 2047, the group has proposed that pharma and biotech grow to a $500-billion industry by then. Indian manufacturing sector's share in GDP is estimated at 13% against a global average of 16% and China's 26%. The aim is to finalise the 2047 plan by May this year.