India’s Defence Production Reaches New Heights at ₹1.27 Lakh Crore

Historical Context: India’s journey towards self-reliance in defence manufacturing has been a long-standing goal, dating back to its post-independence era. The country has consistently aimed to reduce its dependency on foreign arms imports and bolster its indigenous defence capabilities. The “Make in India” initiative, launched in 2014 by Prime Minister Narendra Modi, has been a significant policy measure to promote domestic manufacturing across various sectors, including defence. This initiative has led to numerous reforms and incentives to encourage both public and private sector participation in defence production.

Current Achievement: In the financial year 2023-24, India achieved a record high in local defence production, reaching nearly ₹1.27 lakh crore. This marks a 16.8% increase from the previous financial year. Defence Minister Rajnath Singh announced this milestone, attributing the growth to enabling policy measures and the government’s commitment to creating a conducive environment for defence manufacturing.

Sector Contributions:

• Public Sector: Defence Public Sector Undertakings (DPSUs) and other public sector units contributed 79.2% of the total production value.
• Private Sector: The private sector accounted for the remaining 20.8%.

Key Products: India’s defence production includes a wide range of military hardware such as:

• Tejas Light Combat Aircraft (LCA)
• Various types of helicopters
• Warships
• Tanks
• Artillery guns
• Missiles and rockets
• Military vehicles

Government Initiatives: The government has implemented several policy reforms and eased business regulations over the past decade to support this growth. These efforts have led to significant indigenisation and a surge in defence exports.

Defence Exports:

• Defence exports reached a record ₹21,083 crore in FY 2023-24, a 32.5% increase from the previous fiscal year.
• India exports military hardware to around 85 countries, including missiles, artillery guns, rockets, armoured vehicles, offshore patrol vessels, personal protective gear, radars, surveillance systems, and ammunition.

Future Goals: India aims to achieve a turnover of ₹1.75 lakh crore in defence manufacturing by FY 2024-25, further establishing itself as a global defence manufacturing hub.

Summary:

• Record Production: India’s defence production reached ₹1.27 lakh crore in FY 2023-24, a 16.8% increase from the previous year.
• Sector Contributions: 79.2% from public sector units and 20.8% from the private sector.
• Key Products: Includes Tejas LCA, helicopters, warships, tanks, artillery guns, missiles, rockets, and military vehicles.
• Government Initiatives: Policy reforms and ease of doing business have significantly contributed to this growth.
• Defence Exports: Reached ₹21,083 crore in FY 2023-24, a 32.5% increase from the previous year.
• Future Goals: Targeting a turnover of ₹1.75 lakh crore in defence manufacturing by FY 2024-25.
• Global Reach: Exporting military hardware to around 85 countries.