India’s Defence Production Hits Rs 1.27 Lakh Cr In FY23-24: Report

After breaching the Rs 1,00,000 crore mark in terms of value of annual defence production last year, India has registered its highest-ever growth in the financial year 2023-24. As per the official data by the defence ministry, in FY 2023-24, the country’s annual indigenous defence production stood at Rs 1,26,887 crore, showing positive year-on-year (YoY) growth of 16.7 per cent. In the financial year 2022-23, the numbers were Rs 1,08,684 crore.

As far as the sectoral contributions are concerned, nearly 79.2 per cent of the total value of production (VoP) has been contributed by the defence public sector undertakings (DPSU) along with the other PSUs. With this, the DPSU and PSU have also managed to cross the Rs 1,00,000 crore mark. The remaining portion (20.8 per cent) of the VoP has been the contribution of the private sector entities.

Defence Minister Rajnath Singh took to X (formerly Twitter) to congratulate the all-time high performance by the industry. He wrote, “The Make in India programme is crossing new milestones, year after year, under the leadership of PM Narendra Modi. Many congratulations to our industry including DPSUs, other PSUs manufacturing defence items and the private industry. The government is committed to creating a more conducive regime for developing India as a leading global defence manufacturing hub.”

India has registered continuous positive growth in terms of the value of annual defence production since 2019-20. The numbers for the same stood at Rs 7,90,71 crore in 2019-20 which now stands at Rs 1,26,887 crore indicating an increase of nearly 60 per cent in the last five years. In addition to this, the country’s defence exports are also seeing an upward trend as it registered a growth of 32.5 per cent in the FY 2023-24 as the exports jumped from Rs 15,920 crore in the last fiscal to Rs 21,083 crore in FY 2023-24.