India's defence production has reached a significant milestone, totaling around Rs 1.27 lakh crore during the financial year 2023-24. This marks a 16.7 percent increase from the previous year and a notable 60 percent growth since 2019-20. This achievement underscores the success of governmental policies and initiatives aimed at achieving self-reliance ('Aatmanirbharta') in defence manufacturing.
The significant growth in defence production can be attributed to the policy reforms and ease of doing business initiatives introduced by the government over the past decade. (Photo: Reuters)
Unprecedented growth
In FY 2023-24, data from Defence Public Sector Undertakings (DPSUs), other public sector units (PSUs) involved in defence production, and private companies indicate that the total value of defence production reached Rs 1,26,887 crore, marking a notable increase from Rs 1,08,684 crore in FY 2022-23.
Defence Minister Rajnath Singh celebrated this milestone in a post on X, highlighting the advancements of the ‘Make in India’ initiative under Prime Minister Narendra Modi's leadership. Singh reiterated the government's commitment to establishing India as a prominent global hub for defence manufacturing.
Contributions and expansion within the sector
In the 2023-24 period, data shows that 79.2 percent of the total value of production (VoP) originated from Defence Public Sector Undertakings (DPSUs) and other Public Sector Undertakings (PSUs), with the private sector contributing 20.8 percent. A Ministry of Defence statement issued on July 5, 2024, emphasized steady growth in both sectors in absolute terms. Singh praised the industry for achieving this peak in defence production, underscoring the collaborative efforts of DPSUs, other PSUs, and private enterprises.
(Graph: Ministry of Defence)
Efforts towards policy reforms and indigenous initiatives
The significant rise in defense production can be attributed to policy reforms and initiatives to improve business conditions implemented by the government over the past decade. These measures are aimed at enhancing self-sufficiency and promoting domestic manufacturing in defense. The persistent efforts towards promoting domestic production have played a crucial role in achieving this unprecedented Value of Production (VoP).
Defense exports experiencing a spiral
In addition to bolstering domestic production, India has experienced notable expansion in its defence exports, thereby contributing to the overall rise in indigenous defence manufacturing. Defence exports reached a record Rs 21,083 crore in FY 2023-24, marking a 32.5 percent increase from the previous fiscal year's Rs 15,920 crore.
Prospects for the future
Over the past five years, the continuous rise in defense production highlights the success of government initiatives and the industry's adaptability. India's sustained efforts to enhance its defense manufacturing capabilities are positioning it as a major player in the global defense market.
India's defence production hits record high as make in india programme cross new milestones | Times Now
Rajnath Singh’s appreciation
In a post on X, Singh stated that the government is dedicated to fostering a more supportive environment to position India as a premier global hub for defense manufacturing.
He also congratulated the Indian industry, including defense public sector undertakings, other public sector undertakings producing defense items, and the private sector, for their achievement.
"The Make in India programme is crossing new milestones, year after year, under the leadership of PM Shri @narendramodi," he said.
"India has registered the highest ever growth in the value of defence production in 2023-24. The value of production has reached to Rs. 1,26,887 crore in 2023-24 which is 16.8 per cent higher than the value of production of previous financial year," he wrote on X.
Statements released by defence minstry
"The Ministry of Defence has achieved the highest-ever growth in indigenous defence production in value terms during financial year (FY) 2023-24, on the back of successful implementation of the policies and initiatives of the government, led by Prime Minister Narendra Modi, focussing on achieving 'Aatmanirbharta'," the defence ministry said in a statement on Friday.
The annual defence production has hit a record high of approximately Rs 1.27 lakh crore in 2023-24, it said.
"As per the data received from all Defence Public Sector undertakings (DPSUs), other PSUs manufacturing defence items and private companies, the value of defence production in the country has gone up to a record-high figure, i.e., Rs 1,26,887 crore, reflecting a growth of 16.7 per cent over the defence production of the previous financial year," the statement said.
The defence ministry said that of "the total value of production (VoP) in 2023-24, about 79.2 per cent has been contributed by DPSUs/other PSUs and 20.8 per cent by the private sector".
The data shows that in terms of absolute value, both DPSUs/PSUs and private sector have recorded a steady growth in defence production, the statement said.
The feat has been achieved due to the policy reforms and initiatives and ease of doing business brought in by the government in the last 10 years with focus on attaining self-reliance, the ministry said.
"The indigenisation efforts have been pursued aggressively on a sustained basis, that resulted in the highest ever VoP. Moreover, the spiralling defence exports have contributed tremendously to the overall growth in the indigenous defence production," the statement said.
Defence exports touched a record-high of Rs 21,083 crore in FY 2023-24, reflecting a growth of 32.5 per cent over the last fiscal when the figure was Rs 15,920 crore, it added.
In the last five years (since 2019-20), the value of defence production has been increasing steadily, and grown by over 60 per cent, the statement said and also shared year-wise data in this period.
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