September 25, 2024
Defence exports exceeded INR 21,000 crore, and this figure is expected to rise to INR 50,000 crore within five years
India is now exporting military hardware to over 90 countries worldwide, strengthening its global defence partnerships
The government aims to reduce its dependence on arms imports, expecting to spend US$130 billion on military procurement by 2029
Foreign Direct Investment (FDI) in the defence sector has been increased to 74% through the automatic route, with up to 100% FDI allowed in special cases
India’s defence production surged to a record INR 1.27 lakh crore in 2023-24, Defence Minister Rajnath Singh announced on Wednesday, marking a significant milestone for the nation’s growing defence manufacturing sector. This achievement comes as part of the 10th anniversary of the ‘Make in India’ programme, an initiative launched by Prime Minister Narendra Modi’s government to boost self-reliance across sectors, including defence.
Substantial reforms have been introduced over the past decade to strengthen India’s domestic defence manufacturing capabilities. Rajnath Singh highlighted that these reforms are part of a broader strategy to establish India as a key player in the global defence industrial landscape. The initiative has focused on bolstering military preparedness, particularly along sensitive borders such as China, and fostering the growth of homegrown defence industries.
Defence exports have surpassed INR 21,000 crore for the first time, with India now exporting military hardware to over 90 countries. The defence ministry is working towards a more ambitious target of INR 50,000 crore in defence exports over the next five years as the country seeks to position itself as a major global supplier of military equipment.
Despite these advancements, India remains one of the world’s largest arms importers. The Indian armed forces are projected to spend approximately US$130 billion on capital procurement by 2029, with efforts underway to reduce dependency on foreign military platforms. To support this, the government has implemented policies to encourage domestic defence manufacturing to achieve a turnover of US$25 billion (INR 1.75 lakh crore) in defence manufacturing within the next five years.
In line with this vision, the government has also increased the Foreign Direct Investment (FDI) limit in the defence sector from 49% to 74% under the automatic route. In specific cases, 100% FDI is permitted, further facilitating foreign investment and technological collaboration in India’s growing defence sector.
Source: Economic Times