New Delhi, Apr 17 (PTI) The value of India's defence production this year is expected to cross Rs 1.60 lakh crore and the target is to manufacture military hardware worth Rs 3 lakh crore by 2029, Defence Minister Rajnath Singh said on Thursday.

Addressing an event here, Singh underlined that India's growing defence capability is not meant to "provoke conflict" and that peace is possible only when the country remains "strong".

Highlighting India's growing strategic capabilities, he said the country now stands shoulder-to-shoulder with developed nations in critical areas such as missile technology (Agni, BrahMos missiles), submarines (INS Arihant), aircraft carriers (INS Vikrant), drones, cyber defence and hypersonic systems.

"Aero engine manufacturing remains a challenge," he contended, while pointing to significant progress under the Kaveri engine project and ongoing discussions with global players like Safran, GE and Rolls Royce to build domestic capabilities.

The project Kaveri under which India planned to develop an indigenous fighter jet engine has witnessed considerable delays.

Showcasing India's rise as a defence manufacturer, Singh said the country's defence exports should reach Rs 30,000 crore this year and Rs 50,000 crore by 2029.

India will reduce its dependency on imports and create a defence industrial eco-system that will not only meet the country's needs but will also strengthen the potential of defence exports, he said.

Singh was speaking at the 'Defence Conclave 2025 -- Force of the Future' hosted by The Week magazine.

"The day is not far when India will not only emerge as a developed country, but our military power will also emerge as the number one in the world," he asserted.

"This year, defence production should cross Rs 1.60 lakh crore, while our target is to produce defence equipment worth Rs three lakh crore by the year 2029," he said.

The defence minister said that while India's defence manufacturing capabilities are aimed at national security and strategic autonomy, they are also insulating manufacturing from global "supply shocks".

Singh underlined that India's growing defence capability is not meant to provoke conflict.

"Our defence capabilities are like a credible deterrence, to maintain peace and tranquillity. Peace is possible only when we remain strong," he added.

In his address, Singh laid out a compelling vision for a "self-reliant and future-ready" India in the defence sector with a focus on indigenisation, innovation, and global leadership.

The defence minister said India is not only securing its borders but also positioning itself as a key player in the international defence ecosystem.

Singh said under the leadership of Prime Minister Narendra Modi, the "revival and strengthening" of the defence sector is one of the biggest priorities for the government.

The government's first and foremost challenge was to change the mindset that India would simply import to meet its defence needs, he recalled.

"Today, while India's defence sector is moving ahead on the path of self-reliance, it is also ready to play a very important role in making global supply chains resilient," Singh emphasised.

He added that the 'Make in India' programme is not only strengthening the country's defence production but also has the capability to make the global defence supply chain resilient and flexible.

On the evolving nature of warfare, Singh underscored that in the coming days, conflicts and wars will be more violent and unpredictable.

The cyber and space domains are rapidly emerging as new battlefields and along with this, a war of narrative and perception is also being fought all over the world.

To address these challenges, he mentioned that the focus is on holistic capacity building and continuous reforms.

Reflecting on reforms, Singh highlighted that corporatising the over 200-year-old Ordnance Factories was a "bold but necessary step".

"Today Ordnance Factories are performing very well in their new form and have become profit making units. I believe that changing a structure that is more than two hundred years old is a very big reform of this century," he added.

The defence minister outlined the government's indigenisation drive, noting the release of five positive indigenisation lists by the armed forces and five by defence public sector undertakings (DPSUs).

The defence ministry came out with the positive indigenisation lists comprising military hardware which will be produced within the country under a staggered timeline.

"The total number of defence equipment, weapon systems and platforms included in the list of the services is 509. These will now be produced in India," Singh said.

"Similarly, the total number of items included in the DPSU lists is 5,012 including strategically-important Line replacement units, sub-systems, spares and components," he said.

Singh also highlighted the government's decision to reserve 75 per cent of the defence budget for procurement from domestic companies.

He pointed out that defence production in India has risen from Rs 40,000 crore in 2014 to over Rs 1.27 lakh crore today.

On defence exports, Singh underscored that the figures had surged from Rs 686 crore in 2013-“14 to Rs 23,622 crore in 2024-“25.

"Defence products made in our country are being exported to about 100 countries. Our defence exports should reach Rs 30,000 crore this year and Rs 50,000 crore by the year 2029," he said.

Singh also underlined the government's commitment to fostering innovation, particularly among the youth and start-ups.

He stated that to encourage cutting-edge technology in the defence sector, iDEX was launched, which offers financial support of up to Rs 1.5 crore to selected start-ups.

Building on its success, iDEX Prime was introduced, enhancing this support to Rs 10 crore.

The Ministry of Defence has approved purchases worth more than Rs 2,400 crore from start-ups/MSMEs, and projects worth more than Rs 1,500 crore have been approved for development of new technology, Singh added.

With emphasis on India's success in shipbuilding, the defence minister stated that more than 97 per cent of the warships of the Indian Navy and Indian Coast Guard are now built in Indian shipyards.

Ships built by India are also being exported to friendly countries like Mauritius, Sri Lanka, Vietnam and Maldives, he said. PTI MPB KVK KVK