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      29 May 2025 – India’s defence sector is undergoing a strategic transformation, fuelled by policy reforms, technological ambition, and the Atmanirbhar Bharat push. With rising private sector participation, growing exports, and a focus on advanced technologies, the industry is fast becoming a key driver of national security, innovation, and global competitiveness. The vision of 'Atmanirbhar, Agrani, and Atulya Bharat' embodies India's aspirations to emerge as a leading global power in defence manufacturing clearly delineating strategic vectors that translate it into tangible objectives. It is poised for a generational transformation, as outlined in the newly released KPMG in India report titled – 'Atmanirbhar, Agrani, and Atulya Bharat 2047 – India’s Defence Industrial Sector Vision 2047’, published in partnership with CII. It was released today at CII’s Annual Business Summit 2025.

      This report envisions a future where India's defence sector leads the way towards innovation, self-reliance, and global excellence. It is a forward-looking thought leadership document that brings together insights from industry, government, and academia. It promotes the alignment and collaboration among diverse stakeholders, offering an opportunity to foster a thriving, self-reliant, and globally competitive defence industry that will elevate India's standing as a formidable force in the 21st century.

      Key highlights from the report

      Strategic vision
       

      India envisions becoming a global leader in the defence landscape by achieving self-reliance, excelling as a prominent exporter, and pioneering advancements in critical niche technologies.

      Strategic vectors
       

      The strategic vectors are outlined to enhance self-reliance, achieve global leadership in technology, and become a major exporter which will be require phased implementation of strategic recommendations over three distinct periods of Short term (2025-2032), Medium term (2032-2038) and Long term (2038-2045).

      • Enhancing self-reliance in defence capabilities by 2032

        Reduce import dependency by investing in indigenous R&D, expanding domestic manufacturing, and fostering innovation

      • Becoming a global exporter by 2038

        Position India among the top five global defence exporters by expanding international partnerships, meeting global standards and vigorously promoting Indian defence products in international markets

      • Achieving global leadership in critical niche technologies by 2045

        To position India as a world leader in niche defence technologies by fostering industry-academia-government collaboration and investing in next-generation R&D

      Strategic capabilities required - Six pillars of capability development are:

      science

      R&D and Innovation

      Boost defence R&D investment and establish a National Defence Technology and Innovation Framework (NDTIF) to drive breakthrough technologies

      groups

      Talent and Skill development

      Prioritising talent acquisition, retention, and continuous skill enhancement is central to achieving Vision 2047 where a skilled workforce is essential for designing, developing, and maintaining advanced defence systems

      flight

      Developing defence production capabilities

      To support development of domestic production capabilities,  the government has introduced various initiatives and policies, including the ‘Make in India’ initiative, creating defence corridors, funding support, industrial incentives, testing infrastructure, etc

      assured_workload

      Regulatory and procedural reforms

      Simplified regulatory framework, adopt an adaptive policy-making approach that evolves with technological advancements and strengthen DPSUs and break procedural shackles to make them globally competitive

      language

      Strategic partnerships and collaborations

      Deepen international collaborations with technologically advanced countries like the U.S., Israel, Japan, and European nations

      business

      Infrastructure

      Expand the world-class testing, simulation, and certification facilities for emerging technologies, and adopt advanced manufacturing technologies

      Commenting on the report findings, Gaurav Mehndiratta, Partner and National Head – Aerospace, Defence & Space, KPMG in India said, “We present this thought leadership envisioning the future of India's Defence strategy as we look towards 2047. Grounded in strategic insight, the thought leadership offers a forward-looking perspective on shaping the robust defence ecosystem. It delves into the current state, uncovers the critical gaps and proposes well-defined time bound actionable - paving a path toward achieving our vision of Viksit Bharat by the year 2047”.

      Cdr Gautam Nanda, Associate Partner – Aerospace, Defence & Space, KPMG in India said, “As we navigate through a landscape defined by seismic global shifts and ever-evolving security challenges, the need to formulate and execute a comprehensive strategy for the defence sector has never been more pressing. The vision of ‘Atmanirbhar, Agrani, and Atulya Bharat 2047’ embodies India's ambition to become a foremost power in global defence manufacturing. This vision beckons clear and actionable steps to realise this bold objective where the strategic vectors delineate this vision into concrete goals that collectively pave way for India's progression.”

      Atmanirbhar, Agrani, and Atulya Bharat 2047 – India’s Defence Industrial Sector Vision 2047

      India's defence vision 2047 outlines 'Atmanirbhar, Agrani, and Atulya Bharat 2047' to emerge as a global power in defence manufacturing

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      About KPMG in India

      KPMG entities in India are professional services firm(s). These Indian member firms are affiliated with KPMG International Limited. KPMG was established in India in August 1993. Our professionals leverage the global network of firms, and are conversant with local laws, regulations, markets and competition. KPMG has offices across India in Ahmedabad, Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Jaipur, Kochi, Kolkata, Mumbai, Noida, Pune, Vadodara and Vijayawada.

      KPMG entities in India offer services to national and international clients in India across sectors. We strive to provide rapid, performance-based, industry-focused and technology-enabled services, which reflect a shared knowledge of global and local industries and our experience of the Indian business environment.

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      KPMG in India
      Mobile No - +91 9820770846
      Email - vidyamohan@kpmg.com

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