India's Defence Production Surpasses $15 Billion Mark: A Make in India Milestone
India’s Defence Production Surpasses $15 Billion Mark: A Make in India Milestone
New Delhi, July 8, 2024 — In a significant achievement for the Make in India initiative, India’s defence production has reached a record high of approximately Rs 1.27 lakh crore ($15 billion) for the fiscal year 2023-24. This marks a substantial increase from the previous year’s figure of Rs 1,08,684 crore, underscoring the country’s growing capabilities in defence manufacturing.
Record-Breaking Growth
Defence Minister Rajnath Singh announced the milestone, celebrating the achievement as a testament to the nation’s dedication to self-reliance in defence production. He stated, “This remarkable progress is a reflection of our commitment to reducing dependence on imports and enhancing our indigenous capabilities. The Make in India initiative has been a crucial driver in this journey.”
Prime Minister’s Commitment
Prime Minister Narendra Modi also commended the development, emphasizing the government’s unwavering support for the defence sector. “We are dedicated to creating a conducive environment for defence manufacturing. This achievement not only strengthens our national security but also contributes significantly to our economy,” said PM Modi. He reiterated his administration’s commitment to policy reforms and incentives aimed at fostering innovation and investment in the defence sector.
Strategic Initiatives and Reforms
The increase in defence production is attributed to several strategic initiatives and policy reforms introduced under the Make in India program. These include:
- Enhanced FDI Limits: The government has increased the foreign direct investment (FDI) limit in the defence sector to 74% through the automatic route and 100% through government approval, encouraging more international collaborations.
- Defence Production and Export Promotion Policy (DPEPP) 2020: This policy aims to position India among the top countries in aerospace and defence. It targets an annual turnover of $25 billion, including exports of $5 billion by 2025.
- Simplified Procedures: The simplification of the industrial licensing process and ease of doing business have attracted numerous domestic and international players to invest in the Indian defence industry.
- Indigenisation of Defence Equipment: There has been a concerted effort to promote the indigenisation of defence equipment, reducing reliance on imports and fostering domestic innovation.
Industry Response
The Indian defence industry has responded positively to these measures, with several major projects and collaborations coming to fruition. Key players in the sector, including Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), and private sector giants like Larsen & Toubro (L&T) and Tata Advanced Systems, have significantly ramped up production capacities.
Economic Impact
The growth in defence production has had a ripple effect on the economy, creating job opportunities and boosting ancillary industries. The defence sector’s contribution to the GDP has seen a noticeable uptick, reflecting its critical role in India’s economic landscape.
Future Outlook
Looking ahead, the government aims to sustain and further accelerate this momentum. Initiatives such as the Defence Innovation Organisation (DIO) and Innovations for Defence Excellence (iDEX) are expected to drive cutting-edge technological advancements. The focus remains on achieving self-reliance in critical defence technologies and promoting exports.