India’s defence production has reached an unprecedented milestone, hitting approximately Rs 1.27 lakh crore in the financial year 2023-24. This marks a 16.7 percent increase over the previous year and an impressive 60 percent growth since 2019-20. This achievement underscores the success of the government’s policies and initiatives aimed at achieving ‘Aatmanirbharta’ or self-reliance in defence manufacturing.

Record-Breaking Growth

According to data from Defence Public Sector Undertakings (DPSUs), other public sector units (PSUs) manufacturing defence items, and private companies, the total value of defence production in FY 2023-24 stands at Rs 1,26,887 crore. This is a significant rise from Rs 1,08,684 crore in FY 2022-23.

Defence Minister Mantri Rajnath Singh acknowledged this achievement in a post on X, highlighting the progress of the ‘Make in India’ programme under the leadership of Prime Minister Narendra Modi. Singh reiterated the government’s commitment to establishing India as a leading global defence manufacturing hub.

Contributions and Sector Growth

The data reveals that 79.2 percent of the total value of production (VoP) in 2023-24 was contributed by DPSUs and other PSUs, while the private sector accounted for 20.8 percent. According to an official statement issued by Ministry of Defence (July 5, 2024) both sectors have shown steady growth in absolute terms. Singh congratulated the industry for achieving this record-high defence production, emphasizing the collective efforts of DPSUs, other PSUs, and private companies.

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.
(Graph: Ministry of Defence)

Policy Reforms and Indigenisation Efforts

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. These reforms have focused on enhancing self-reliance and promoting indigenisation in defence manufacturing. The aggressive and sustained efforts towards indigenisation have been pivotal in reaching this highest-ever VoP.

Spiralling Defence Exports

In addition to domestic production, India’s defence exports have also seen remarkable growth, contributing to the overall increase in indigenous defence production. Defence exports reached a record high of Rs 21,083 crore in FY 2023-24, reflecting a 32.5 percent growth over the previous fiscal’s Rs 15,920 crore.

Future Prospects

The consistent rise in the value of defence production over the past five years highlights the effectiveness of the government’s initiatives and the industry’s responsiveness. As India continues to enhance its capabilities and achieve greater self-reliance in defence manufacturing, it is poised to become a major player in the global defence market.