India achieved its highest-ever defence exports, reaching $2.5 billion (Rs 20,915 crore) in the financial year (FY) 2023-24. It marks a 25% increase from $2 billion in the previous fiscal year 2022-23. The Economic Survey 2023-24, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on 22 July, revealed these figures. According to the Survey, data from the Ministry of Defence (MoD) also showed that the value of exported military equipment and systems in FY24 had grown more than 12 times compared to the figure of $0.2 billion in FY17.
The latest milestone represents a 25% increase from the $2 billion reported in FY23. Data from the Ministry of Defence (MoD) shows a significant rise in India’s annual domestic defence production, reaching nearly Rs 1.27 trillion in FY24, a 16.7% increase from Rs 1.09 trillion in the previous fiscal year. The survey acknowledges the tremendous efforts of both the private defence sector and the defence public sector in achieving “the highest-ever defence exports”.
“Between 2015 and 2019, India was the world’s second-largest arms importer. However, the narrative has changed, and India has transitioned from being an arms importer to being listed among the top 25 arms exporting nations,” stated the survey. “India’s defence production has significantly increased from Rs 74,054 crore in FY17 to Rs 108,684 crore (Rs 1.09 trillion) in FY23, leading to a boost in defence exports,” the annual survey revealed.
The Survey mentioned that defence exports saw a significant increase due to a rise in the number of export authorisations to defence exporters. The authorisations increased to 1,507 in FY24 from 1,414 in FY23, showing a growth of about 6.6 per cent year-on-year.
The Survey also underscored the pivotal role of approximately 100 domestic companies in the surge of defence exports. These companies are exporting a wide range of defence products and equipment, including aircraft like Dornier-228, artillery guns, Brahmos missiles, PINAKA rockets and launchers, radars, simulators, and armoured vehicles. Their diverse and high-quality exports have significantly bolstered India’s position among the top 25 arms-exporting nations, showcasing India’s self-reliance and global competitiveness.
The government has actively promoted defence exports in the past decade through various policy measures. These include streamlining export procedures to make them more industry-friendly, minimising delays, and enabling end-to-end online export authorisation. The “Atmanirbhar Bharat” (Self-reliant India) initiatives have also played a key role by promoting Indigenous design, development, and manufacturing of defence equipment, ultimately decreasing reliance on imports in the long term, mentioned the Survey.
The Economic Survey 2023-24 emphasises India’s substantial advancements in the defence sector. It highlights the country’s record-high defence exports and increased domestic production. Through ongoing collaboration between the private and public sectors, bolstered by strategic government policies, India is positioned to strengthen its self-reliance in defence production. It will be done while balancing being a major arms importer and increasing its exports.
Team BharatShakti
