Defence Secretary Rajesh Kumar Singh has said India plans to establish a second fighter aircraft production line to reduce dependence on a single facility and strengthen domestic manufacturing, CNBCTV18 reported.
Speaking at a Public Affairs Forum of India event, Singh said relying on only one production line could leave the country vulnerable to delays and production constraints. He indicated that India should eventually have at least two, and possibly three, fighter aircraft production lines.
The government is already evaluating proposals from three shortlisted companies for the Advanced Medium Combat Aircraft (AMCA) program. The initiative is expected to encourage greater private-sector participation in the production of advanced combat aircraft.
Singh also said India wants multiple missile manufacturers instead of depending on a single public-sector undertaking. The government’s objective is to build scale, expand production capacity and create a stronger industrial base.
He indicated that India should have around half a dozen missile producers and hundreds of drone manufacturers. The government is also opening ammunition and propellant production to more private-sector companies to reduce dependence on a single supplier.
According to Singh, India has achieved a significant degree of self-reliance in land systems, artillery, small arms and military vehicles. However, some aerospace systems and advanced technologies continue to involve dependence on foreign technology.
He said future major procurements involving foreign technology would increasingly include a substantial Make-in-India component. Fighter aircraft and the C-295 transport aircraft were cited as examples of platforms where domestic manufacturing and industrial participation would be important.
The government also aims to ensure that 75% of defence capital expenditure is spent domestically each year. The 2026–27 capital outlay reportedly stands at ₹2.19 lakh crore, with approximately 75% of the capital acquisition budget earmarked for domestic procurement.
Singh said India’s defence industry turnover had risen from an aggregate ₹46,000 crore in 2014 to nearly ₹1.8 lakh crore at present. Defence exports have also increased sharply, from ₹686 crore in 2013–14 to ₹38,424 crore in 2025–26, according to government data.
Defence export orders have now reached about ₹38,000 crore. India has set a target of ₹50,000 crore by 2030, but Singh said the target could be achieved as early as 2028 or 2029 because of the growing number of international enquiries.
Around 145 Indian companies are currently exporting defence equipment, ranging from bulletproof jackets and ballistic helmets to more complex systems such as BrahMos missiles and Akash surface-to-air missile systems.
Singh said India’s cost advantage could support further growth in missile exports. While he cautioned that a one-fourth price comparison would not apply universally, he said Indian missile production costs were generally lower than those of foreign original equipment manufacturers.
He described cost competitiveness as one of India’s key advantages in the global defence market, particularly in missiles, artillery and other systems where lower production costs can improve export prospects.
On procurement policy, Singh said the government had made it increasingly difficult for the armed forces to opt for outright imports. Procurement proposals must now explain why an imported system cannot be replaced by a buy-and-make arrangement involving Indian industry.
Discussing future warfare, he said the number of active conflicts worldwide was at its highest level since the Second World War. Long-range weapons, stand-off systems and drones are expected to dominate the opening stages of future conflicts.
Air defence is likely to become increasingly important as militaries field larger numbers of missiles, drones and other aerial threats. Singh added that tanks and armoured platforms would remain relevant during later phases of combat.
He said India already possesses the technology and industrial capability to integrate unmanned systems with tanks. A proposal to begin procuring tanks with built-in unmanned systems was recently announced, reflecting the growing importance of human-machine teaming on the battlefield.
The government’s broader objective is to create a diversified defence manufacturing ecosystem capable of producing fighters, missiles, drones, ammunition, armoured platforms and other complex systems at scale.
Agencies
