India's defence production is projected to achieve a 20% annual growth rate during the fiscal years 2024 to 2029, with ambitious targets set by the government to enhance self-reliance in defence manufacturing. The Ministry of Defence has outlined plans for defence production to reach ₹1.75 lakh crore in FY 2025, growing to ₹3 lakh crore by FY 2029, reflecting a significant commitment to bolstering the country's defence capabilities and reducing reliance on imports.

In FY 2023-24, India's defence production hit a record high of approximately ₹1.27 lakh crore, marking a substantial increase from previous years. This growth is attributed to effective government policies aimed at promoting indigenous manufacturing, including the Make in India initiative. The shift from being predominantly an arms importer to becoming an emerging centre for indigenous production has been pivotal in this transformation.

Key Drivers of Growth

Government Initiatives: The Indian government has implemented several reforms to encourage domestic production, including liberalizing foreign direct investment (FDI) limits and streamlining procurement processes. These initiatives aim to attract investment and enhance manufacturing capabilities within the country.

Private Sector Involvement: Approximately 21% of defence production now comes from the private sector, indicating a growing role for private enterprises alongside public sector units (DPSUs). This diversification is crucial for fostering innovation and increasing competition within the defence industry.

Export Growth: India's defence exports have surged dramatically, reaching an all-time high of ₹21,083 crore in FY 2023-24, up from just ₹686 crore a decade ago. The government aims to further increase exports to ₹50,000 crore by 2029, highlighting India's expanding role in the global arms market.

Future Outlook

The ambitious targets set for defence production reflect India's strategic vision to become a self-sufficient defence manufacturing hub. With ongoing investments in research and development and an emphasis on indigenization, India is well-positioned to meet its security needs while also establishing itself as a reliable partner in international defence collaborations.

In conclusion, India's defence sector is on a robust growth trajectory, driven by strategic government initiatives and increased participation from both public and private sectors. The commitment to achieving self-reliance and enhancing export capabilities underscores the nation's evolving role in global defence manufacturing.

IANS