‘India’s defence sector achieves record growth in production and exports in FY 2023-24’
New Delhi: The Indian defence sector has witnessed unprecedented growth in indigenous production during the financial year 2023-24, reaching a record-high value of Rs 1,26,887 crore. This represents a 16.7 per cent increase from the previous year’s production of Rs 1,08,684 crore. The surge in output underscores the successful implementation of government policies to boost self-reliance in defence manufacturing, the defence ministry announced on Tuesday.
It also mentioned that the state-owned Defence Public Sector Undertakings (DPSUs) and other public-sector entities accounted for 79.2 per cent of the total production, while the private sector contributed 20.8 per cent. Both segments recorded steady growth, highlighting the effectiveness of public-private collaboration in achieving the sector’s objectives. The government has set an ambitious target to reach Rs 3 lakh crore in defence production by 2029.
In addition to domestic production, India’s defence exports also hit an all-time high of Rs 21,083 crore ($2.63 billion) in FY 2023-24, marking a 32.5 per cent increase from the previous fiscal year. This represents a 31-fold increase compared to export levels a decade ago in FY 2013-14. The private sector and DPSUs contributed 60 per cent and 40 per cent, respectively, to this milestone. The government remains optimistic about achieving its export target of Rs 50,000 crore by 2029. To support this growth, the Ministry of Defence introduced streamlined export procedures, including Open General Export Licenses (OGEL), which facilitates faster approvals. Additionally, an online EXIM portal was established to manage export leads and connect Indian manufacturers with global markets. A total of 153 export leads were disseminated through this portal in 2024 alone.
The defence ministry has also reinforced its vision of self-reliance through a series of groundbreaking initiatives and modernisation efforts. It confirmed that nearly 97 per cent of acquisition contracts over the past four years have been signed with Indian vendors, reflecting a strong emphasis on domestic procurement. Innovations such as the portable multi-target detonation device and the full body armour suit highlight advancements in indigenous technology, supported by organisations like the Army Design Bureau and the Centre for Development of Advanced Computing (CDAC).
The defence budget for FY 2024-25 reached Rs. 6.22 lakh crore, an 18.43 per cent increase from FY 2022-23. Notably, 75 per cent of the capital procurement budget was earmarked for domestic industries, further supporting indigenous manufacturing.
The country’s defence sector witnessed major inductions and commissionings during this outgoing year. Key acquisitions and developments included the commissioning of the Arihant-class submarine INS Arighaat and the stealth-guided missile frigate INS Tushil, both showcasing advanced indigenous design and technology. The Light Combat Helicopter (LCH) Prachand was also fully inducted, enhancing India’s aerial capabilities.
