India's military industrial complex is undergoing a significant transformation, transitioning from being the world's largest arms importer to a burgeoning defence exporter. This shift is primarily driven by government initiatives aimed at enhancing domestic production capabilities and fostering a robust defence ecosystem.

Growth in Defence Exports

India's defence exports have seen remarkable growth, surging over 30-fold in the past decade. In the fiscal year 2023-2024, exports reached ₹21,083 crore (approximately $2.63 billion), marking a 32.5% increase from the previous year. This growth is attributed to strategic government policies that simplify licensing and approvals, along with a focus on establishing India as a global manufacturing hub for defence systems. The Ministry of Defence (MoD) has set ambitious targets, aiming for defence exports to reach ₹35,000 crore (about $5 billion) by 2025 and total defence production to hit ₹3 trillion (around $36 billion) by 2028-29.

Government Initiatives

The Modi administration has implemented several key initiatives under the Make in India and Atmanirbhar Bharat Abhiyan (self-reliant India mission) frameworks. These initiatives aim to reduce reliance on imports and promote indigenous manufacturing of defence equipment. The government has also established private assembly plants for military transport aircraft and commercial helicopters, which are expected to cater to both domestic and international markets.

Key Achievements

Defence Production Increase: The turnover for domestic defence production reached ₹1,087 billion (approximately $13.5 billion) in 2022-23.

Export Expansion: India's defence exports now reach over 90 countries, showcasing its growing global presence in the defence sector.

Strategic Partnerships: Collaborations with major global players like Boeing have further enhanced India's manufacturing capabilities.

Looking ahead, India aims to solidify its position as a key player in the global defence market. The government projects a Compound Annual Growth Rate (CAGR) of approximately 13% for domestic defence opportunities and 21% for exports over the next several years. Additionally, there are plans to export advanced systems such as fighter jet engines, which could elevate India's status among exclusive nations capable of exporting fighter jets.

India's military industrial complex is on an upward trajectory, driven by strong governmental support and strategic reforms aimed at achieving self-reliance and expanding its role as a significant player in the global defence landscape.