It’s Raining Contracts

As 2024 drew to a close, the ministry of defence issued a press release enumerating its achievements during the year. The highlight of the release was listing of the ways in which the ministry worked to realise Prime Minister Narendra Modi’s vision of Aatmanirbharta in defence. Divided into sub-categories, the achievements are:

Positive Indigenisation List: In July, the department of defence production issued the fifth Positive Indigenisation List (PIL) consisting of 346 items. These include Line Replacement Units/ Systems/ Sub-systems/ Assemblies/ Sub-assemblies/ Spares & Components and raw materials. Earlier, four PILs comprising 4,666 items were notified by the DDP for DPSUs, of which 2,972 items worth Rs 3,400 crore have already been indigenised. These five lists are in addition to the five PILs of 509 items notified by the department of military affairs, including highly-complex systems, sensors, weapons and ammunition.

Defence Production: MoD achieved the highest-ever growth in indigenous defence production in value terms during Financial Year 2023-24. The defence production went up to a record-high figure of Rs 1,26,887 crore, reflecting a growth of 16.7 per cent over the defence production of the previous financial year. The value of defence production in 2022-23 was Rs 1,08,684 crore. Of the total value of production 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. MoD has set a target to achieve Rs three lakh crore defence production by 2029.

Defence Exports: Defence exports touched a record Rs 21,083 crore (approximately USD 2.63 billion) in 2023-24, a growth of 32.5 per cent over the previous fiscal when the figure was Rs 15,920 crore. The figures indicated that the exports grew by 31 times in the last 10 years as compared to 2013-14. The defence industry, including the private sector and D