India's Defence budget to rise five-fold to Rs 31.7 lakh crore by 2047, says CII KPMG Report

New Delhi [India], May 30 (ANI): India is expected to see a major boost in its defence sector by the year 2047, with the total defence budget projected to rise to Rs 31.7 lakh crore, according to joint study report by Confederation of Indian Industry (CII) and KPMG.
This is a significant increase from the Rs 6.8 lakh crore allocated in 2024-25, marking nearly a five-fold jump over the next two decades.
According to the latest projections in the report, India's defence production is also expected to grow strongly. It is estimated to touch Rs 8.8 lakh crore by 2047, compared to Rs 1.6 lakh crore in 2024-25.
The country is also aiming to expand its defence exports, which are likely to increase from Rs 30,000 crore currently to Rs 2.8 lakh crore by 2047.
The report also mentioned that a key focus of the upcoming defence strategy is to increase the share of capital expenditure in the total budget. This share is expected to rise from 27 per cent in 2024-25 to 40 per cent by 2047, indicating higher investments in infrastructure, technology, and weapon systems.
India's spending on research and development (R&D) in defence will also increase, rising from 4 per cent to between 8 per cent and 10 per cent. The percentage of GDP spent on defence is expected to go up from 2 per cent to 4-5 per cent by 2047.
These developments are likely to improve India's global standing in defence expenditure. Currently ranked 4th, India is projected to move up to 3rd place by 2047.
However, the report highlighted that the dependence on defence imports for critical technologies remains a significant challenge, hindering self-reliance and innovation in the domestic defence manufacturing sector.
Furthermore, the report also noted that there is a shortage of skilled manpower to drive advanced technological developments and manage sophisticated defence systems.
Another issue the report stated is the geopolitical tensions that pose constant threats and could divert focus and resources away from long-term development goals.
At the same time, India's strategic position in South Asia, as the geopolitical and economic leader of the global South in the past decade, has doubled down on the need for a robust and responsive defence stance.
Highlighting the role of private industry, the report added that fostering robust public-private partnerships is necessary but complex, as the private sector needs incentives and support to 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. (ANI)