Military hardware exports of India zoomed 78 per cent to ₹6,915 crore in the April-June quarter of 2024-25 from ₹3,885 crore in the corresponding period of 2023-24. Indeed, this steep rise indicates continuous expansion of this sector as India moves forward with its initiative on an Atmanirbhar Bharat or self-reliant India.
According to the Economic Survey 2023-24 tabled in Parliament on July 22, India's defence exports touched a record high of $2.5 billion in FY 2023-24. This is a 25 per cent increase from $2 billion in FY 2022-23 and points toward a steady upward move in the past few years.
Notably, the survey had remarked, "India's defence exports have risen by over 12 times since FY 2017, mirroring the country's resolve to emerge as a major defence manufacturing and exporting country in the world. "
The growth is attributed to export authorisations for defence manufacturers, which rose to 1,507 in FY 2024 from 1,414 in FY 2023.
Defence Minister Rajnath Singh had recently remarked that the Modi regime accorded topmost priority to the defence sector. "Parallelly, with the emphasis on 'Make in India', the government has set an export target of ₹50,000 crore of military hardware in 2028-29," he said.
Singh said corporatization had changed the ordnance factories into technology-oriented and accountable corporations. He added, "This is why production is more."
Underlining the effort of the Modi government to support domestic companies like Hindustan Aeronautical Limited, Tata, and L&T to build national capacity in the defence sector, he said,.
The industry has begun to prove its design and developmental capabilities by exporting to more than 85 countries in South East Asia, the Middle East, Africa, and Latin America. Currently, some 100 firms are engaged in the exporting of defense products.
It is in this context that the government has adopted a range of policy initiatives, taken related economic reforms in the last ten years, and smoothened procedures for exports by providing end-to-end online export authorization, thereby reducing delays and increasing the ease of doing business concerning exports.
The growth of the private sector has been an important development in this context. Larsen & Toubro, Tata Advanced Systems, Bharat Forge—are all major contributors now to this sector.
In FY 2023–24, while the contribution of the DPSUs/other PSUs was about 79.2 per cent, that by the private sector was 20.8 per cent. Both show a steady growth in defense production.
In its defense export portfolio, it has missiles, radars, naval systems, helicopters, and surveillance equipment. Regarding advanced naval systems produced for export, there have been some remarkable successes with platforms like the INS Vikrant aircraft carrier for the country. Other exportable products in this category pertain to fast-attack naval craft, offshore patrol vessels, and various maritime weapon systems. Another system developed in cooperation with Russia, the BrahMos supersonic cruise missile, saw its purchase by the Philippines as the latest development.
Read also | India's CPI Inflation Hits 59-Month Low at 3.54%
Read also | SEBI Urges Investors to Exercise Caution Regarding Hindenburg Report
