In a remarkable shift from its previous position as the world’s second-largest arms importer between 2015 and 2019, India has emerged as one of the top 25 arms-exporting nations. The Economic Survey 2024 reveals that India’s defence production and export capabilities have grown significantly, reflecting a transformative change in the country’s defence sector.
The survey highlights a substantial increase in India’s defence production, rising from Rs 74,054 crore in FY17 to Rs 108,684 crore in FY23. This growth has been instrumental in boosting defence exports, with India now exporting a diverse range of defence products to over 85 countries. The rise in defence exports is supported by a corresponding increase in export authorisations, which grew from 1,414 in FY23 to 1,507 in FY24.
A critical factor in this transformation has been the concerted efforts of both the private sector and Defence Public Sector Undertakings (DPSUs). These entities have achieved record-high defence exports, aided by the government’s policy initiatives designed to simplify export procedures and foster a more industry-friendly environment. The implementation of end-to-end online export authorisation has reduced delays and enhanced the ease of doing business, contributing to the sector’s growth.
One of the pivotal initiatives driving this change is the Aatmanirbhar Bharat (Self-Reliant India) campaign. This initiative has encouraged the indigenous design, development, and manufacture of defence equipment, reducing India’s dependency on imports. The Economic Survey underscores that this self-reliance has not only strengthened India’s defence capabilities but also positioned the country as a significant player in the global arms market.
Among the notable defence products that India exports are the Dornier-228 aircraft, artillery guns, BrahMos missiles, PINAKA rockets and launchers, radars, simulators, and armoured vehicles. The Defence Ministry’s December 2023 report highlighted the growing global demand for platforms like the LCA-Tejas, Light Combat Helicopters, aircraft carriers, and Maintenance, Repair, and Overhaul (MRO) activities. These products are a testament to India’s expanding defence manufacturing capabilities and the quality of its defence technology.
The Economic Survey also points out that about 100 domestic companies are currently involved in exporting defence products and equipment. This diversification in the defence export base indicates a robust and growing defence industry capable of meeting international standards and demands.
The government’s proactive measures over the past decade have been crucial in facilitating this growth. By streamlining export procedures and promoting indigenous production, India has positioned itself as a reliable exporter in the global defence market. This shift is not only economically beneficial but also strategically significant, enhancing India’s influence and partnerships worldwide.
In summary, the Economic Survey 2024 paints a picture of a transformed India, which has successfully evolved from a major arms importer to a prominent arms exporter. This transition underscores the country’s growing defence manufacturing capabilities and its commitment to self-reliance and global collaboration. As India continues to strengthen its position in the global arms market, it sets a precedent for other nations aiming to enhance their defence industries and reduce dependency on foreign imports.
