‘Make In India’ booms defense production to record high Of Rs 1.26 Lakh Crore in 2023-24

On Friday, July 5th, 2024, India’s annual defense achieved the highest-ever growth in production value during financial year 2023-24, of approximately Rs. 1.27 lakh crore, as announced by Minister Rajanth Singh.

“India has registered the highest ever growth in the value of defense production in 2023-24. The value of production has reached to Rs. 1,26,887 crore in 2023-24 which is 16.8% higher than the value of production of previous financial year,” he added.

“The Make in India program is crossing new milestones, year after year, under the leadership of PM Shri Narendra Modi,” Singh said in a post on X. Singh emphasized the Made in India initiative’s significant advancement, pointing out that it has been reaching new benchmarks.

“The Ministry of Defence has achieved the highest-ever growth in indigenous defence production in value terms during financial year (FY) 2023-24, on the back of successful implementation of the policies and initiatives of the government, led by Prime Minister Narendra Modi, focussing on achieving ‘Aatmanirbharta’,” the defence ministry said in a statement on Friday.

This change is essential for economic expansion, technical innovation, and national security. The budgetary resources assigned to indigenous defense initiatives serve as further evidence of the government’s commitment to achieving this strategic objective. Still, there are several obstacles in the way of utilizing local defense production to its full potential.

The “Made in India” campaign was introduced in 2014 to make India a hub for global manufacturing. This program has had a particularly significant influence on the defense industry, introducing various important regulations and changes to support local manufacturing. Foreign direct investment (FDI) regulations have been loosened by the government, allowing up to 74% of FDI through automated channels and 100% with government approval in the defense industry.

“The Government is committed to create a more conducive regime for developing India as a leading Global Defence Manufacturing Hub,” he added.

Record Growth in Defense Production

This has prompted several foreign defense corporations to establish manufacturing facilities and joint ventures in India. He congratulated the Indian defense industry on its accomplishment, highlighting both public-sector initiatives and private-sector firms engaged in defense manufacturing. Singh stated earlier in April that India’s defense exports reached a record-breaking Rs 21,083 crore during the fiscal year 2023-24, marking a 32.5 percent growth compared to the previous year.

“As per the data received from all Defence Public Sector undertakings (DPSUs), other PSUs manufacturing defense items, and private companies, the value of defense production in the country has gone up to a record-high figure, i.e., Rs 1,26,887 crore, reflecting a growth of 16.7 percent over the defense production of the previous financial year,” the statement said.

Singh congratulated the Indian industry, including defense public sector undertakings and other public sector undertakings manufacturing defense items, and the private industry for the feat.

“The Make in India program is crossing new milestones, year after year, under the leadership of PM Shri @narendramodi,” he said. The defense ministry said that of “the total value of production (VoP) in 2023-24, about 79.2 percent has been contributed by DPSUs/other PSUs and 20.8 percent by the private sector”.

In April, Singh declared that the defense exports from India reached a record high of Rs 21,083 crore during the 2023–24 fiscal year, indicating a 32.5% increase over the previous year.

India’s defense sector is robust, as seen by the export of its made-in-India defense products to over 85 nations. “The indigenization efforts have been pursued aggressively on a sustained basis, that resulted in the highest ever VoP. Moreover, the spiraling defense exports have contributed tremendously to the overall growth in the indigenous defense production,” the statement said.

India is one of the countries that exports the most advanced defense equipment, including Brahmos Missiles and 155 mm Advanced Towed Artillery Guns, to other countries. More than 100 companies are now engaged in this business. According to the statement, the data demonstrates that both the private sector and DPSUs/PSUs have seen a consistent increase in defense output in terms of absolute value.

The accomplishment is attributable to the initiatives and legislative changes as well as the ease of doing business brought in by the government in the last 10 years with a focus on attaining self-reliance, the ministry said.

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