PM Modi and UP CM Yogi Adityanath during the opening of Kalashnikov AK-203 factory

India's defence production has achieved a record high of approximately ₹1.27 lakh crore (around $15 billion) for the fiscal year 2023-24, marking a significant growth of 16.7% compared to the previous year. This milestone was celebrated by Defence Minister Rajnath Singh, who emphasized the government's commitment to enhancing India's self-reliance in defence manufacturing under the 'Make in India' initiative.

The private sector's contribution to defence production has increased, accounting for about 20.8% of the total production value in 2023-24. The government has issued over 600 licenses to more than 350 companies, including major players like Tata Group and Mahindra, to manufacture various defence equipment. This shift aims to diversify production beyond traditional public sector entities.

The government is aggressively pursuing indigenization efforts, with plans to produce items like the AK-203 assault rifle domestically. Initial batches have already been delivered to the Indian Army, with a goal of achieving full localization in production. Moreover, India aims to enhance its defence exports, which have also seen substantial growth, reaching ₹21,083 crore in FY 2023-24, up by 32.5% from the previous year.

Looking ahead, India aims for a turnover of ₹3 lakh crore in defence production by 2029. This includes establishing two dedicated Defence Industrial Corridors in Tamil Nadu and Uttar Pradesh to foster manufacturing capabilities and attract investments. The government is also promoting innovation through initiatives like iDEX (Innovations for Defence Excellence) and easing foreign investment regulations in the defence sector.