India logs all-time high defence production value at over Rs 1.26 trillion

According to an official press release by the defence ministry, 79.2 per cent of the production was undertaken by the DPSUs and the other PSUs while 20.8 per cent by the private players

Defence Minister Rajnath Singh on Friday announced that India’s defence sector production has clocked an all-time high growth in the financial year 2023-24 at Rs 1,26,887 crore, marking a substantial 16.7 per cent year-on-year increase.

“The Make in India programme is crossing new milestones, year after year, under the leadership of PM Shri,” Singh said.

The value of defence production in FY23 was Rs 1,08,684 crore.

He congratulated the industry players including Defence Public Sector Undertakings (DPSUs), other PSUs manufacturing defence items as well as the private sector companies for the milestone.

Singh said the Centre is committed to cementing India’s position as a global defence manufacturing hub.

PM Modi also reacted to the encouraging development and reiterated Singh’s assurance of establishing India as a leading global defence manufacturing hub. “We are fully committed to nurturing a supportive environment to further enhance our capabilities....This will enhance our security apparatus and make us Aatmanirbhar!” he said in a post on X.

Share of private players in India’s defence production

According to an official press statement by the defence ministry, 79.2 per cent of the production was undertaken by the DPSUs and the other PSUs while 20.8 per cent was by the private players.

The statement cited factors such as continued focus on boosting indigenous production, and ‘spiralling’ defence exports as the reason behind the key achievement.

In FY24, the defence exports value touched Rs 21,083 crore, a new high and a 32.5 per cent increase compared to the previous financial year.

Defence production value up 60% since FY20

The ministry also noted that the defence production value has grown over 60 per cent in the past five years. According to the data, this value stood at Rs 79,071 crore in FY20, in which the share of private companies stood at Rs 15,894 crore.

In February, Singh announced that India’s annual defence production is forecasted to reach Rs 3 trillion by FY29. Additionally, the country's defence exports are expected to reach Rs 50,000 crore by FY29, he stated during a Defence Summit on February 24.