India records highest ever growth in value of defence production

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Defence production in India registered 16.8% growth in terms of value as compared to 2022-23.

Key Highlights

About 79.2% has been contributed by Defence Public Sector undertakings (DPSUs)/other PSUs and 20.8% by the private sector.
Since 2019-20, value of defence production has been increasing steadily, and grown by over 60%.
By 2028-29, annual defence production is expected to touch ₹ 3 lakh crore and defence exports ₹ 50,000 crore.

Defence Production and Export Promotion Policy 2020 (DPEPP) and Defence Acquisition Procedure (DAP 2020) empowers Indian domestic industry through Make in India initiative.
Foreign Direct Investment (FDI) limit has been raised to 74% through the Automatic Route and upto 100% under government route.
Innovations for Defence Excellence (iDEX) scheme and indigenisation portal SRIJAN.
Establishment of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu.

Bureaucratic Inertia leads to delay in reforms as well as delivery of projects.
Lack of technological depth to design/manufacture major systems and critical parts.
Scalability issues: Present defence exports are mainly composed of spare parts and components.
Budget issues and dependency on PSUs.

Simplification of Regulatory Processes and reducing bureaucratic hurdles through a single-window system.
Promotion of public private partnerships.
Focus on quality assurance, standardization and improve international marketing and branding.
Expedite the defence procurement decision-making process to facilitate the industry in manufacturing and supplying arms in the shortest possible timeframe.