Defense production in India has surged to a new milestone, reaching approximately ?1.27 lakh crore during the financial year 2023-24. This record value marks a significant 16.7% increase over the previous fiscal year, reflecting continuous growth since 2019-20. The Ministry of Defence attributed this achievement to aggressive indigenization efforts and robust defense exports, which have bolstered the sector’s performance.
According to the Ministry of Defence, Defence Public Sector undertakings (DPSUs), other Public Sector Units (PSUs), and private companies collectively contributed to this record production. Approximately 79.2% of the production value came from DPSUs and other PSUs, while the private sector accounted for 20.8%. Both sectors have shown steady growth in absolute terms, highlighting a positive trend in defense manufacturing.
Over the past five years, defense production in India has steadily increased, demonstrating a growth of more than 60% since 2019-20. This growth trajectory is supported by the record-high defense exports, which totaled ?21,083 crore in FY 2023-24, up by 32.5% from the previous fiscal year. Defence Minister Rajnath Singh praised the ‘Make in India’ initiative under Prime Minister Narendra Modi’s leadership, emphasizing India’s ambition to become a global hub for defense manufacturing.
The Ministry of Defence credited policy reforms and initiatives aimed at enhancing ease of doing business for the sector’s remarkable growth. These efforts have been instrumental in fostering self-reliance in defense production, aligning with the government’s strategic objectives to strengthen national security and boost economic resilience in the defense sector.
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