India has achieved a significant milestone in its defence manufacturing capabilities, with defence exports reaching a record high of ₹21,083 crore ($2.6 billion) in the fiscal year 2023-24.
This achievement underscores the success of government initiatives such as "Make in India" and "Aatmanirbharta" (self-reliance), aimed at bolstering domestic defence production and export capabilities. The surge in exports also reflects a threefold increase in the value of defence production since 2014-15, demonstrating the growth of India's defence industrial base.
Interestingly, the United States, France, and Armenia have emerged as the top three importers of Indian military hardware. The US has become a major buyer of sub-systems and components, with leading companies like Boeing and Lockheed Martin sourcing parts for their aircraft and helicopters from Indian manufacturers. This collaboration signifies a growing strategic partnership between the two nations in defence manufacturing.
France has been procuring substantial amounts of software and electronic equipment from India, strengthening bilateral defence ties and highlighting India's technological advancements in defence electronics. Meanwhile, Armenia has emerged as the largest importer of complete weapon systems from India, with deals for Akash air defence missile systems, Pinaka multi-launch rocket systems, and 155mm artillery guns. This partnership has deepened, particularly in light of Armenia's conflicts with Azerbaijan, positioning India as a key defence partner in the region.
Indian defence companies, both public and private, have been exporting a diverse range of products, including missiles, radars, armoured vehicles, and aircraft like the Dornier-228. This diversification showcases India's versatility as a defence exporter in the global market. The growth in exports can be attributed to the government's efforts to streamline defence production, encourage private sector participation, and simplify export regulations.
With 16 defence public sector undertakings, over 430 licensed manufacturers, and approximately 16,000 micro, small, and medium enterprises (MSMEs) actively involved, India's defence industry is rapidly expanding.
Looking to the future, the Indian government has set ambitious targets to further enhance defence production and exports. With defence production reaching ₹1.2 lakh crore in 2023-24, the aim is to achieve ₹3 lakh crore by 2028-29, along with arms exports worth ₹50,000 crore. These targets demonstrate India's commitment to not only fulfilling its domestic defence requirements but also becoming a major player in the international defence market.
