India achieved a milestone in its India defence production sector, recording a historic high of Rs 1.27 lakh crore in 2023-24. Defence Minister Rajnath Singh announced the achievement, marking a boost for the country's defence manufacturing capabilities. This record aligns with the 10th anniversary of the ‘Make in India’ initiative, a key component of the NDA government's strategy to promote indigenous manufacturing and reduce dependency on imports.

Despite this achievement, India remains among the world's largest arms importers. The Indian armed forces are likely to spend around USD 130 billion on capital procurement by 2029, underlining the need to enhance domestic production capabilities. The government is actively promoting local defence manufacturing to reduce reliance on imported military platforms and strengthen the country’s defence infrastructure.

India defence production
Image Source: www.rajnathsingh.in

Targeting $25 Billion Turnover

The Ministry of Defence has set an ambitious target of achieving defence manufacturing turnover of about USD 25 billion (Rs 1.75 lakh crore) within the next five years. This plan is part of an overall vision of making India a standalone self-reliant hub for defence.

To attract foreign investment and boost local production, the government increased the limit of the Foreign Direct Investment (FDI) in the defence sector from 49% to 74% under the automatic route in May 2020. In specific cases, up to 100% FDI is permitted. This new measure is likely to usher in foreign technology and investment for the local defence sector.

Expanding Global Reach

India’s defence exports have also seen remarkable growth, with military hardware being exported to over 90 countries. Such growth marks a new position underlining the country's transformation as a significant player in the international defence market.

Record-breaking figures and growth in export reflect the success of initiatives like 'Make in India' and bolstered indigenous capability. As India keeps marching ahead with modernizing armed forces, its focus remains on reducing import dependency and establishing a strong domestic defense manufacturing ecosystem.

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