India’s Defence Exports Reach Record High of ₹23,622 Crore in 2024-25

1. India's defence exports have reached a record ₹23,622 crore in 2024-25, reflecting a growth of 12.04% compared to the previous year.
2. This growth underscores the increasing global acceptability of Indian defence products and India's growing integration into the global supply chain.

Significance of Rising Defence Exports:

1. Promoting Indigenous Defence Production: India's defence production has grown by 174% from 2014-15 to 2023-24, fostering greater self-reliance in defence manufacturing.
2. Policy Targets: India aims to achieve ₹3 lakh crore in defence production and ₹50,000 crore in defence exports by 2029.
3. Catering to International Demand: In 2024-25, 92% of the global contracts signed by the Ministry of Defence were awarded to Indian domestic industries.
4. Boosting Private Sector Participation: The private sector contributed ₹15,233 crore to India's defence exports in 2024-25, playing a significant role in the sector’s growth.
5. Diversified Export Portfolio: India's defence export portfolio includes a variety of products, such as bulletproof jackets, Dornier (Do-228) aircraft, and Chetak helicopters, helping to reduce dependency on imports.

Key Challenges in Defence Exports:

1. Slow Growth in Defence Public Sector Undertakings (DPSUs): While DPSUs saw a 42.85% rise in exports in FY 2024-25, their actual production levels still lag behind the private sector.
2. Lack of Technological Depth: Despite advances, India still imports critical components, systems, and raw materials due to a lack of technological depth in certain areas of defence manufacturing.
3. Lag Between Policy Announcement and Implementation: Bureaucratic hurdles continue to impact the timely implementation of policies designed to boost defence exports.

Key Initiatives Driving India’s Defence Exports:

1. Indigenous Production: Initiatives like Make in India, strengthening the defence industrial base (including DPSUs and MSMEs), and the Defence Testing Infrastructure Scheme (DTIS) aim to boost domestic production capacity.
2. Advancing Self-Reliance: Programs like SRIJAN (Self-Reliant Initiatives through Joint Action) and the development of Defence Industrial Corridors are driving self-reliance in defence manufacturing.
3. Innovation and Research: The development of innovative technologies is being supported through initiatives like IDEX (Innovative Defence Excellence) and the MAKE projects, which focus on advancing indigenous production.

Policy Reforms: The government has implemented liberalized policies such as allowing 74% Foreign Direct Investment (FDI) through the automatic route, as well as measures to ease the process of doing business, like extending the validity of export authorization for parts and components.

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