India's Defence Production Hits Record Rs 1.27 Lakh Cr

India's defence production reached a record Rs 1.27 lakh crore in 2023-24, with the country exporting military equipment to over 90 nations, Defence Minister Rajnath Singh announced on Wednesday. This achievement coincides with the 10th anniversary of the 'Make in India' initiative introduced by the NDA government.

Launched under Prime Minister Narendra Modi, the initiative focused on achieving self-reliance in various sectors, including defence. Singh remarked, "A decade later, reforms have been introduced across all sectors, including defence. India is gaining prominence in the global defence industry."

In recent years, several steps have been taken to boost domestic defence production, with a focus on military readiness, particularly along the China border. In 2023-24, defence exports crossed Rs 21,000 crore for the first time, with a goal to increase this to Rs 50,000 crore in five years.

Despite this, India remains one of the world's largest arms importers. The Indian armed forces are expected to spend around USD 130 billion on capital procurement by 2029. To reduce dependence on foreign military systems, the government is promoting domestic defence production.

The defence ministry is targeting a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing within five years. In May 2020, the government raised the foreign direct investment (FDI) limit in the defence sector from 49 per cent to 74 per cent under the automatic route, with 100 per cent FDI allowed in specific cases.