Defence production reaches a record Rs 1.26 lakh crore in 23-24

According to the Union Ministry of Defence, India's total annual defence production reached Rs Rs 1,26,887 crore in 2023-24. It is India's highest-ever production of defence equipment and products in any financial year. The data was released by the Defence Ministry on 5 July 2024.

In 2022-23, the total defence production in the country was Rs 1,08,684 crore.  

Public Sector Undertakings leader in Defence production 

According to the Defence Ministry, the contribution of the public sector undertaking to the total value of production in 2023-24 was around  79.2%, and the contribution of the private sector was 20.8%.

Both the private and public sectors recorded steady growth in their production.

Defence production in 2023-24 was Rs 1,26,887 crore compared to Rs 1,08,684 crore, registering a growth rate of 16.7 per cent. 

In the last five years, the value of defence production has been increasing steadily and has grown by over 60%. In 2019 -20, the total defence production was Rs 79071 crore, which has grown to Rs 1,26,887 crore in 2023-24.

Record growth in Defence Export

The increase in domestic production has been due to record exports of defence products from India. In 2023-24, India exported defence goods worth Rs 21,083 crore compared to  Rs 15,920 crore in 2022-23. 

The government has set a target to export defence goods worth Rs 35,000 crores in 2024-25. India exports multiple defence goods, such as missiles, artillery guns, rockets, armoured vehicles, offshore patrol vessels, personal protective gear, radars, surveillance systems, and ammunition, to around 85 countries worldwide.

Reason for Increase in Domestic Production 

The present government, which came into power in 2014, introduced a policy of achieving self-sufficiency in the defence sectors. The government pushed for the indigenisation of defence products under the Make in India initiative. 

It has also facilitated the participation of the private sector in defence production to make India a hub of global defence production.  

Reforms were introduced in the defence public sector undertakings, and the government has actively pursued a policy to boost defence exports from India. All these factors have contributed to India's record defence production.