MoD Showcases Record Defence Production and Exports in FY 2023-24
TATA Aircraft Complex at the TATA Advanced Systems Limited (TASL) Campus in Vadodara, Gujarat, inaugurated on 28 October 2024 and dedicated to manufacturing C-295 military transport aircraft, becomes the first private sector Final Assembly Line (FAL) for military aircraft in India. Under the programme, 56 C-295 aircraft will be delivered, with the initial 16 arriving from Airbus in Spain and the remaining 40 produced domestically. This initiative exemplifies India’s shift toward self-reliance in defence manufacturing, aimed at strengthening operational readiness and reducing dependency on foreign imports.
India is gradually transforming from a major arms importer to an emerging centre for indigenous production. According to data from defence public sector undertakings (DPSUs), other public sector units manufacturing defence items, and private companies, the value of defence production has surged to a record high of INR 1,27,265 crore, representing an increase of approximately 174 per cent from INR 46,429 crore in 2014-15.
Historically, India relied heavily on foreign countries for its defence needs, with about 65-70 per cent of defence equipment being imported. However, now around 65 per cent of defence equipment is being manufactured within India. Notably, 21 per cent of this production comes from the private sector. As part of the make in India initiative, major defence platforms such as the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Combat Aircraft (LCA) Tejas, submarines, frigates, corvettes, and the recently commissioned INS Vikrant have been manufactured.
Consequently, the annual defence production is on track to reach a target of INR 1.75 lakh crore in the current fiscal year, with aspirations of achieving INR 3 lakh crore in defence production by 2029.
Moreover, India’s defence exports have reached an all-time high, surging from INR 686 crore in FY 2013-14 to INR 21,083 crore in FY 2023-24, an increase of over 30 times. Defence exports also experienced a substantial growth of 32.5 per cent over the previous fiscal year, rising from INR 15,920 crore. India’s export portfolio includes a diverse range of advanced defence equipment, including bulletproof jackets and helmets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes. A noteworthy inclusion is ‘made in Bihar’ boots for the Russian Army.
Currently, India exports to over 100 nations, with the top three destinations for defence exports in 2023-24 being the United States, France, and Armenia. According to defence minister Rajnath Singh, the target is to increase defence exports to INR 50,000 crore by 2029.
In recent years, the government has implemented a series of transformative initiatives aimed at bolstering the country’s defence production capabilities and achieving self-reliance. These measures are designed to attract investment, enhance domestic manufacturing, and streamline procurement processes. From liberalising foreign direct investment (FDI) limits to prioritising indigenous production, these initiatives reflect a robust commitment to strengthening India’s defence industrial base.