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Defence & Security3 Nov 2026 · about 6 min

Rajnath Singh chairs defence modernisation meeting in Jaisalmer, targets ₹3 lakh crore production by 2029

The brief

Modernisation means preparing the armed forces for present and emerging security challenges in several connected ways. It includes new equipment, but also operational preparedness, advanced technology, capable personnel and stronger domestic defence capabilities. The goal is a military that can adapt to changing warfare rather than simply possess more weapons. The article gives several examples. The three services are refining their structures and formations. New Army formations, including Asani, Bhairav and Shaktiban, are intended to address contemporary operational requirements. The meeting also examined tri-service integration, joint planning, artificial intelligence, cyber and space capabilities, autonomous systems and advanced communications. This approach links money, technology, human capital and organisation. Modernisation therefore requires cooperation among the armed forces, DRDO, industry and academic institutions. It is a long-term effort to improve readiness, develop indigenous systems and build strategic autonomy, not a one-time procurement exercise.

01

What does “modernisation of the Indian defence forces” mean beyond simply buying new weapons?

Modernisation means preparing the armed forces for present and emerging security challenges in several connected ways. It includes new equipment, but also operational preparedness, advanced technology, capable personnel and stronger domestic defence capabilities. The goal is a military that can adapt to changing warfare rather than simply possess more weapons.

The article gives several examples. The three services are refining their structures and formations. New Army formations, including Asani, Bhairav and Shaktiban, are intended to address contemporary operational requirements. The meeting also examined tri-service integration, joint planning, artificial intelligence, cyber and space capabilities, autonomous systems and advanced communications.

This approach links money, technology, human capital and organisation. Modernisation therefore requires cooperation among the armed forces, DRDO, industry and academic institutions. It is a long-term effort to improve readiness, develop indigenous systems and build strategic autonomy, not a one-time procurement exercise.

02

How large is the defence investment and what production and export targets has India set for 2029?

The scale is substantial: the defence budget for FY 2026-27 was raised to a record ₹7.85 lakh crore. Within it, ₹2.19 lakh crore is allocated as capital outlay for modernisation and capital procurement. This funding is intended to support the equipment, systems and capabilities needed for evolving security challenges.

India is also setting larger industrial goals. Domestic defence production rose from ₹46,429 crore in FY 2014-15 to ₹1.78 lakh crore in FY 2025-26. Defence exports increased from below ₹2,000 crore in 2014 to approximately ₹40,000 crore. These figures show the expansion already reported before the next target.

By 2029, the government aims to reach ₹3 lakh crore in defence production and ₹50,000 crore in exports. Reaching those goals will depend on continued investment, private-sector participation, research, faster processes and stronger links among defence organisations, industry and universities.

03

Why is the government making self-reliance in defence manufacturing a central goal?

The government is making self-reliance central because strategic autonomy and indigenous technological capabilities are described as essential to national security. A stronger domestic defence ecosystem can help India reduce dependence on foreign sources for important military equipment and systems. It also connects security needs with national industrial and technological development.

The reported growth shows the intended direction. Domestic defence production rose from ₹46,429 crore in FY 2014-15 to ₹1.78 lakh crore in FY 2025-26. Exports grew from below ₹2,000 crore in 2014 to approximately ₹40,000 crore. The government is giving private companies a level playing field and encouraging participation from MSMEs to large corporations.

Self-reliance is therefore not limited to government factories. It involves DRDO, public-sector undertakings, private industry, academic institutions and skilled personnel. The 2029 goals of ₹3 lakh crore production and ₹50,000 crore exports show how the policy links readiness, autonomy, innovation and industrial capacity.

04

What changes in warfare are driving India’s focus on artificial intelligence, autonomous systems, cyber, space, electronic warfare and advanced communications?

The meeting focused on changing warfare patterns, emerging security threats and technological advancements. These developments mean military effectiveness increasingly depends on more than traditional weapons. Forces must strengthen operational preparedness and adapt their structures, planning and systems to contemporary battlefield requirements.

The committee therefore discussed artificial intelligence, autonomous systems, unmanned platforms, cyber and space capabilities, electronic warfare and advanced communication systems. The article also highlights DRDO work on advanced weapons, missiles and military systems. Together, these areas show the broad technology shift shaping modern military operations.

The practical response is not simply to purchase separate technologies. The armed forces must integrate them into joint operational planning and usable capabilities. India is also seeking indigenous development through cooperation among the services, DRDO, public-sector undertakings, private industry and academic institutions. This supports faster adaptation while reducing dependence on foreign sources over time.

05

How could increased domestic defence production affect India’s military readiness, foreign dependence and defence exports?

Increased domestic production could strengthen readiness by making more indigenous equipment, weapons and military systems available to the armed forces. The article connects modernisation with operational preparedness, advanced technology and long-term capability development. A stronger production base may also help the country sustain its security needs through its own industrial ecosystem.

The current trend is significant. Production rose from ₹46,429 crore in FY 2014-15 to ₹1.78 lakh crore in FY 2025-26. The government is involving DRDO, defence public-sector undertakings, private firms and MSMEs, while supporting research and innovation. This broad participation is the mechanism for expanding domestic capacity.

If the effort succeeds, India could reduce dependence on foreign sources and strengthen strategic autonomy. It could also become a larger defence exporter. The stated goals are ₹3 lakh crore in production and ₹50,000 crore in exports by 2029, although reaching them will require continued coordination and progress reviews.

06

Which organisations must work together to turn defence research and funding into usable military capabilities?

No single organisation can deliver defence modernisation alone. The armed forces identify operational needs and use the resulting capabilities. DRDO develops advanced weapons, missiles and military systems. Defence public-sector undertakings, private companies and academic institutions add production capacity, research, innovation and technical knowledge.

The article specifically stresses collaboration among these groups. It also describes a level playing field for private industry, from MSMEs to large corporations. This creates a wider defence ecosystem rather than relying on one type of organisation. Joint work can connect military requirements with research, development and manufacturing.

The meeting also emphasised coordination, streamlined acquisition and development processes, and regular reviews against defined objectives. Tri-service integration and joint operational planning are important parts of the mechanism. Together, these steps are intended to turn funding and technology into usable capabilities and improve the armed forces’ preparedness for changing threats.

07

What is capital acquisition in a defence budget, and why is it different from spending on salaries, maintenance and routine operations?

Capital acquisition means spending on major defence assets and long-term capability creation, such as acquiring or developing systems needed to modernise the armed forces. In the article, the capital outlay is specifically linked to modernisation and capital procurement. It is the investment side of the defence budget, aimed at building or improving military capability.

This differs from salaries, maintenance and routine operations. Salaries support personnel, while maintenance keeps existing equipment serviceable. Routine operations cover the continuing activities required to run the forces. Capital acquisition instead supports significant new equipment, platforms, infrastructure or systems, although the article does not list individual purchases.

The distinction matters because a large total defence budget does not show how much is available for modernisation. For FY 2026-27, the budget is ₹7.85 lakh crore, including ₹2.19 lakh crore in capital outlay. That allocation shows the government’s emphasis on new capability and long-term preparedness.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.

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