February 26, 2024
Defence exports surge from under INR 1,000 crore to INR 16,000 crore, placing India among the top 25 global weapons exporters
Significant focus on indigenous defence production, with annual domestic production exceeding INR 1 lakh crore
Defense Ministry allocates INR 6.2 lakh crore in the 2024-25 budget, the highest among all ministries
Emphasis on jointness among the Army, Navy, and Air Force, with approved capital acquisitions exceeding INR 4.3 lakh crore
India aims to achieve a significant milestone in its defence sector, with Defense Minister Rajnath Singh projecting annual defence production to reach INR 3 lakh crore by 2028-29. Singh underscored the Modi government’s commitment to long-term progress, envisioning India’s development into a developed nation by 2047. Notably, defence exports have surged from under INR 1,000 crore to INR 16,000 crore, propelling India into the top 25 global weapons exporters.
Singh highlighted the government’s focus on indigenous defence production, highlighting radical changes to align with PM Modi’s vision of ‘Aatmanirbhar Bharat.’ Annual domestic defence production has surpassed INR 1 lakh crore, indicating a shift towards self-reliance. Speaking at a defence conclave, Singh discussed structural reforms, emphasising improved coordination among the Army, Navy, and Air Force to address challenges jointly.
Singh acknowledged the government’s efforts to enhance jointness among the armed forces for improved crisis response. Despite initial import bans on certain weapon systems, platforms, and munitions, Singh asserted that these measures had strengthened the domestic defence-industrial base. He expressed confidence in the domestic industry’s capabilities and outlined plans to manufacture advanced systems in India within the next five years, such as aero-engines and gas turbines.
The Defense Ministry’s allocation of INR 6.2 lakh crore in the 2024-25 budget, the highest among all ministries, reflects the government’s commitment to national security. Capital acquisitions exceeding INR 4.3 lakh crore have been approved. Singh stressed the importance of jointness among the armed forces and highlighted initiatives like positive indigenisation lists and earmarking 75% of the capital acquisition budget for local procurement.
Singh stated that the Indian government’s focus on achieving long-term gains is vital for the country’s security. The government prioritises self-reliance in defence production and supports defence startups as part of its commitment to innovation. Singh is optimistic about these startups’ contributions in the next 20-25 years. He envisions a new dimension to India’s global identity in defence manufacturing. The recent Defense Acquisition Council meeting introduced measures to promote startups. These include liberalised costing, payment terms, and eligibility for procurement.
Source: Economic Times