India is taking significant steps to enhance its defence exports, which have recently reached a record high. The government is considering the establishment of a new council specifically aimed at boosting defence exports, as indicated by recent reports. This initiative aligns with India's broader strategy to transform its defence industry into a major global player.

Record Export Figures: In the financial year 2023-24, India's defence exports surged to ₹21,083 crore (approximately $2.63 billion), marking a 32.5% increase from the previous year. This growth reflects a remarkable increase of over 30 times in the last decade, driven by policy reforms and improved manufacturing capabilities.

Government Initiatives: The Indian government has implemented various measures to facilitate this growth, including the establishment of the Export Promotion Council and the India Defence Mart. These initiatives aim to streamline export processes, provide financial incentives, and foster international partnerships.

Strategic Focus: Defence Minister Rajnath Singh has emphasized the government's commitment to making India a net exporter of defence products. The focus is not only on increasing exports but also on enhancing indigenous production capabilities through initiatives like 'Atmanirbharta' (self-reliance) in defence manufacturing.

India's domestic defence production has reached significant milestones, driven by a robust ecosystem comprising 16 Defence Public Sector Units (DPSUs), over 430 licensed companies, and around 16,000 Micro, Small, and Medium Enterprises (MSMEs). Notably, the private sector contributes approximately 21% of this production.

Key Players in India's Defence Sector

Some of the prominent companies in this sector include:

Hindustan Aeronautics Limited (HAL)
Bharat Electronics Limited (BEL)
Mazagon Dock Shipbuilders
Mishra Dhatu Nigam Limited
BEML Limited

These state-owned enterprises play a crucial role in achieving self-reliance in defence manufacturing, aligning with the government's "Make in India" initiative.

Recent Achievements

In the fiscal year 2023-24 (FY24), India's defence production reached a record high of approximately ₹1.27 trillion, reflecting a growth of 16.7% from the previous year. The DPSUs and other public sector undertakings accounted for about 79.2% of this production value, while the private sector contributed around 20.8%. Over the past five years, the value of defence production has increased by more than 60%, showcasing the effectiveness of government policies aimed at enhancing indigenous capabilities and reducing dependency on imports.

Role of MSMEs

The MSME sector is recognized as a vital component of India's defence manufacturing landscape. With their extensive presence in the supply chain, MSMEs are crucial for providing components and subsystems necessary for larger defence projects. They are seen as "force multipliers" that can significantly enhance domestic production capabilities. The government has initiated various reforms to integrate MSMEs more effectively into the defence sector, including simplifying procurement procedures and enhancing access to technology and funding.

International Engagement: India is now supplying defence products to over 90 countries, with significant exports directed towards the USA, France, and Armenia. The government is actively pursuing new markets in Africa and other regions to expand its defence export portfolio.

The proposed council is expected to play a crucial role in further accelerating these efforts by providing targeted support and strategic oversight for defence exports. As India positions itself as a reliable defence manufacturer on the global stage, these initiatives are likely to contribute significantly to achieving ambitious export targets set by the government for the coming years