The Ministry of Defence in India announced on Friday that the value of India's defence production has exceeded Rs one lakh crore in the financial year 2022-23, marking a significant milestone. The total value of defence production in the country during 2021-22 was over Rs 95,000 crore. This achievement is attributed to the continuous efforts of the Ministry of Defence and various measures taken by the government to bolster the domestic defence industry.
The ministry stated that the current value stands at Rs 1,06,800 crore and is expected to rise further as data is received from additional private defence industries. This marks a growth of over 12 percent compared to the previous year when the value of defence production was Rs 95,000 crore.
The government has been working in close collaboration with defence industries and their associations to address challenges and promote defence production in the country. Policy reforms, including the integration of Micro, Small, and Medium Enterprises (MSMEs) and start-ups into the supply chain, have been implemented to enhance the ease of doing business.
The ministry highlighted the active participation of defence industries, MSMEs, and start-ups in the design, development, and manufacturing of military hardware. Over the past seven to eight years, the number of defence licenses issued to industries has increased by almost 200 percent, demonstrating the growth of the sector. These measures have not only stimulated the defence industrial manufacturing ecosystem but also generated significant employment opportunities.
India, being one of the largest importers of arms globally, aims to reduce its reliance on imported military platforms. The government's objective is to promote domestic defence manufacturing and has set a target of achieving a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing by 2024-25, including an export target of USD 5 billion (Rs 35,000 crore) worth of military hardware.
With an estimated expenditure of approximately USD 130 billion in capital procurement over the next five years, the Indian armed forces are poised to significantly contribute to the growth of the domestic defence industry.
