India's defence industry has achieved a landmark milestone, recording its highest-ever defence exports of $2.5 billion in the fiscal year 2023-24 (FY24). This marks a significant 25% increase from the $2 billion in exports recorded in FY23, as highlighted in the Economic Survey 2023-24 presented by Finance Minister Nirmala Sitharaman.
The Ministry of Defence (MoD) data cited in the Survey reveals an even more impressive feat: FY24's defence equipment and systems exports have witnessed an over 12-fold growth compared to the $0.2 billion recorded in FY17. This achievement signals a remarkable transformation in India's defence sector, which was once the world's second-largest arms importer between 2015 and 2019.
The Economic Survey emphasizes this shift, stating, "The narrative, however, has changed. India has transitioned from an arms importer and found a place in the list of the top 25 arms exporter nations."
This remarkable growth is attributed to multiple factors, including a substantial increase in India's annual defence production. In FY24, defence production reached a record high of nearly Rs 1.27 trillion, a 16.7% increase from the previous year's Rs 1.09 trillion.
The Survey acknowledges the "tremendous efforts" of both the private defence sector and defense public sector undertakings in achieving this milestone. Additionally, the number of export authorizations issued to defence exporters rose by 6.6% year-on-year, further contributing to the export surge.
Notably, over 100 domestic companies are now actively exporting a diverserange of defence products and equipment, including aircraft, artillery guns, Brahmos missiles, PINAKA rockets and launchers, radars, simulators, and armored vehicles.
The government's policy initiatives over the past decade have played a crucial role in promoting defence exports. These initiatives include simplifying export procedures, reducing delays, facilitating ease of doing business through online export authorization, and fostering indigenous design, development, and manufacturing through the "Aatmanirbhar Bharat" (Self-Reliant India) initiative.
The Economic Survey, an annual document presented ahead of the Union Budget, underscores this achievement as a testament to the growing strength and capabilities of India's defence sector. The country's transformation from a major arms importer to a significant exporter signifies a new era in its defense industry and its commitment to self-reliance.
