New Delhi: India’s defence exports grew 32.5% this fiscal and crossed the ?21,000-crore mark for the first time as the country remains focussed on boosting the indigenous defence manufacturing ecosystem as well as military exports, the defence ministry said on Monday.
“Defence exports have touched a record ?21,083 crore (approx. US$ 2.63 billion) in the Financial Year (FY) 2023-24, a growth of 32.5% over the last fiscal when the figure was ?15,920 crore. The recent figures indicate that the defence exports have grown 31 times in the last 10 years as compared to FY 2013-14,” the ministry said in a statement.
The private sector and the defence public sector undertakings (DPSUs) contributed around 60% and 40%, respectively, it said, adding that the number of export authorisations rose from 1,414 in FY 2022-23 to 1,507 in FY 2023-24.
“Delighted to inform everyone that the Indian Defence Exports have scaled to unprecedented heights and crossed ?21,000 crore mark for the first time in the history of Independent India! India’s defence exports have reached to the level of Rs.21,083 Crore in the financial year 2023-24 which is a spectacular growth of 32.5% over the previous fiscal,” defence minister Rajnath Singh wrote on X.
India has set a defence export target of ?35,000 crore by 2024-25. The country is currently exporting military hardware to around 85 countries, with around 100 firms involved in the exports. It includes missiles, artillery guns, rockets, armoured vehicles, offshore patrol vessels, personal protective gear, a variety of radars, surveillance systems and ammunition.
Comparative data for the period 2004-05 to 2013-14, and 2014-15 to 2023-24 shows defence exports grew 21 times, the statement said. “Total defence exports during 2004-05 to 2013-14 were ?4,312 crore, which has gone up to ?88,319 crore in the period from 2014-15 to 2023-24.”
“Under Prime Minister Shri @narendramodi’s visionary leadership the Defence ministry has taken several initiatives to spur India’s defence manufacturing and exports. Our defence industries, including the Private Sector & DPSUs, have registered a commendable performance in recent years. Congratulations to all stakeholders on crossing the new milestone in defence exports,” Singh further wrote.
Military exports have risen sharply, and imports have recorded a drop on the back of policy initiatives and reforms during the last nine to 10 years, the government has maintained.
Last May, the government announced that the value of defence production in the country crossed ?1 lakh crore for the first time on the back of key reforms to spur growth in the sector. The figure stood at ?1,06,800 crore in FY 2022-23 compared to ?95,000 crore in FY 2021-22 and ?54,951 crore five years ago. The value of defence production in FY 2023-24 wasn’t immediately available.
India produces a raft of weapons and systems including the Tejas light combat aircraft (LCA), different types of helicopters, warships, tanks, artillery guns, warships, missiles, rockets, a variety of military vehicles and ammunition.
India has sharpened its focus on the defence manufacturing sector during the last five to six years and taken several measures to achieve self-reliance. These include banning the import of a range of weapons, systems and parts, creating a separate budget for buying locally made military hardware, increasing foreign direct investment from 49% to 74% and improving ease of doing business.