India to ramp up indigenisation efforts; looking at capex of $25-30bn per year over next decade: Defence secretary

Rajesh Kumar Singh, defence secretary of India.

Defence Secretary Rajesh Kumar Singh on Monday said India will double down on defence indigenisation, with plans to maintain at least 75 per cent of capital expenditure within the country over the next decade.

Speaking at Network18’s Reforms Reloaded summit in New Delhi, Singh said India will invest around USD 25–30 billion (Rs 2–2.5 lakh crore) annually in defence capital expenditure, with priority given to indigenous procurement in areas where technology readiness is high.

“We will have $25-30 billion of capex every year in defence over the next decade. Our current plans are that at least 75% of capex would be spent within the country,” Singh said.

He highlighted focus areas such as drones, UAVs, underwater vehicles, satellite imagery, precision munitions, and advanced platforms where India currently lacks domestic technology. “In areas where technology readiness is high, we will do entirely indigenous procurement,” he noted.

Talking about the recent India-Pakistan conflict, Operation Sindoor, Singh stressed the need for a diversified and large industrial base. “In recent wars, the number of missiles being fired is huge. India followed a different path and used them in a calibrated way. But every time, the duration can’t be curtailed. So we need a diversified large industrial base,” he said.

On upcoming policy changes, Singh said the Defence Acquisition Procedure (DAP) document will be simplified by December to make it more accessible for the private sector and start-ups, with the new framework expected to take effect from January.

Singh also pointed out that last year’s defence budget was fully utilised, and this year’s allocations are expected to be exhausted as well. “We will be able to do Rs 2-3 lakh crore of projects this year,” he said, adding that defence capital expenditure could see a 10–15 percent annual increase going forward.

“In the medium term, with the finance commission, we can ask for a 17–18 percent increase over the next five years. Nobody can argue against 2.5 percent or 3 percent of GDP spent on defence,” Singh added.