Integration of India's indigenous TEJAS fighter jet in progress at HAL

Annual defence production reaches ₹1.27 lakh crore in FY 2023-24, signalling a 16.7% growth from the previous year

India is seeking to solidify its status as a global manufacturing centre through the increase in Indigenous defence production, propelled by policies and expansion in exports

With a surge in indigenous defence production, India aims to cement its position as a global manufacturing hub driven by policies and export growth.

India’s defence production has soared to new heights, achieving a figure of ₹1.27 lakh crore in the fiscal year 2023-24, a notable 16.7% increase from the preceding year. This surge, reported by the Ministry of Defence, shows the country’s progress towards self-sufficiency in defence manufacturing, buoyed by Prime Minister Shri Narendra Modi’s ‘Make in India’ initiative.

Surge In Indigenous Manufacturing

The milestone was celebrated by Raksha Mantri Shri Rajnath Singh, who hailed the achievement as a testament to India’s growing capability in the global defence sector. “Our consistent efforts under the ‘Make in India’ program have propelled us towards record-breaking production levels year after year,” stated Shri Rajnath Singh, emphasising the government’s commitment to elevate India into a leading defence manufacturing hub.

GlobalData’s intelligence on the Indian defence market highlights that the latest draft version of the Defence Production Policy was introduced in 2016 to achieve self-reliance in the design, development, and production of equipment, weapon systems, and platforms required for defence, to create conditions conducive for the private industry to take an active role in this endeavour, to enhance the potential of SMEs in indigenisation, and to broaden the country’s defence R&D base.

A breakdown of the production figures reveals that Defence Public Sector Undertakings (DPSUs) and other Public Sector Units (PSUs) contributed significantly, accounting for 79.2% of the total production value, with the private sector contributing the remaining 20.8%. This balanced growth signifies a collaboration between public and private entities to advance India’s defence manufacturing capabilities.

The achievement is attributed to a decade-long reform agenda to enhance the ease of doing business and promote indigenous production. These reforms, coupled with indigenisation efforts, have fostered an environment conducive to growth in defence output. The result is a boost in domestic production and a rise in defence exports, which surged to ₹21,083 crore in FY 2023-24, marking a 32.5% increase from the previous fiscal year.

(With Inputs From International Agencies)