Stories

India to Boost Defence Production with Second Fighter Jet Line, More Missile Makers
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CNBC TV18•25-09-2026, 18:45
India to Boost Defence Production with Second Fighter Jet Line, More Missile Makers
  • •India plans a second fighter jet production line to reduce reliance on a single facility and strengthen domestic manufacturing, with proposals for the AMCA programme under evaluation.
  • •The government aims for multiple missile producers to increase scale and production capacity, moving away from sole reliance on a single public sector undertaking.
  • •India has achieved significant self-reliance in land systems, artillery, small arms, and vehicles, though some aerospace and other technologies still depend on foreign expertise.
  • •Defence Secretary Rajesh Singh stated that India's defence exports have reached ’38,000 crore, with a target of ’50,000 crore by 2030, potentially achievable by 2028 or 2029.
  • •Major procurements involving foreign technology will increasingly include a significant make-in-India component, with a goal to spend 75% of defence capital expenditure domestically each year.

Key Questions Answered

India intends to establish a second fighter jet production line to reduce its dependence on a single facility and strengthen domestic manufacturing. The government is currently evaluating proposals for the AMCA program from three shortlisted companies.

Defence exports have already reached ₹38,000 crore, and the government has set a target of ₹50,000 crore by 2030. Due to the rapid pace of current enquiries, officials note that this target could be achieved as early as 2028 or 2029.

The government aims to involve multiple producers rather than relying on a single public sector undertaking to build scale and boost production capacity. While a 1/4th price comparison is not universally feasible, Indian missile production costs are lower, allowing the country to offer similar missiles at a fraction of OEM prices.