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A shift towards indigenisation: 'Make in India' fortifies defence spending

An analysis of defence capex over the past 12 years shows a noticeable shift towards indigenisation

Indian Army

It is noteworthy that defence spending has grown strongly by 9 per cent CAGR after 2016-17 even though the GDP growth has fallen since then

Ajai ShuklaDevangshu Datta New Delhi
An analysis of defence capital expenditure (capex) indicates increased spending during the last four or five years, along with a discernible shift towards indigenisation. Adjusted for inflation, capital allocations to the defence sector have grown at a compounded rate of around 7 per cent between the base year (2011-12) and the present (2022-23).

While rupee-denominated spending has grown at a little better than 8 per cent, imports have grown at just 1.2 per cent during this 11-fiscal year period. The allocation patterns have been quite uneven.

Let’s explain how we’ve examined the data. We looked for defence capital allocations, including

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First Published: Sep 29 2022 | 5:42 PM IST

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