India's defence production reached Rs 1.27 lakh crore in FY 2023-24, marking a 174% rise in the last decade

metro india news  I hyderabad

 India’s defence exports hit an all-time high and crossed Rs 21,000 crore in FY 2003-24. The turnaround has happened due to policies that encouraged private participation. Foreign Direct Investment (FDI) in the defence sector was ushered in 2020 allowing a 74% FDI through automatic route and above 74% through government route.

Once dependent on foreign suppliers, the country now stands as a rising force in indigenous manufacturing, shaping its military strength through home-grown capabilities. 65% of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70% import dependency. A robust defence industrial base includes 16 DPSus, over 430 licenced companies, and approximately 16,000 MSMEs strengthening indigenous production capabilities.

The private sector plays a crucial role, contributing 21% to the total defence production. India targets Rs 3 lakh crore in defence production by 2029 reinforcing its position as a global defence manufacturing hub. Defence exports have surged from Rs 686 crore in FY 2013-14 to an all-time-high of Rs 21,083 crore in FY 2023-24 marking a 30-fold increase over the past decade.

Strategic policies have fuelled this momentum, encouraging private participation, technological innovation, and the development of advanced military platforms. The surge in the defence budget, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, underlines the nation’s determination to strengthen its military infrastructure.

This commitment to self-reliance and modernisation is reflected in the recent approval by the Cabinet Committee on Security (CCS) for the procurement of the Advanced Towed Artillery Gun System (ATAGS), a significant step in enhancing the Army’s firepower. The deal includes 307 units of 155mm/52 caliber guns along with 327 High Mobility 6x6 Gun Towing Vehicles, equipping 15 Artillery Regiments under the Buy Indian–Indigenously Designed, Developed, and Manufactured (IDDM) category, at an estimated cost of ₹7,000 crore.

Developed by DRDO with Bharat Forge and Tata Advanced Systems, ATAGS is a cutting-edge artillery system with a 40+ km range, advanced fire control, precision targeting, automated loading, and recoil management, thoroughly tested by the Indian Army in all terrains. With modern warships, fighter jets, artillery systems, and cutting-edge weaponry being built within the country, India is now a key player in the global defence manufacturing landscape.

This growth has been bolstered by the Make in India initiative, which has enabled the development of advanced military platforms including the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Specialist Vehicles, High Mobility Vehicles, Light Combat Aircraft (LCA) Tejas, Advanced Light Helicopter (ALH), Light Utility Helicopter (LUH), Akash Missile System, Weapon Locating Radar, 3D Tactical Control Radar, and Software Defined Radio (SDR), as well as naval assets like destroyers, indigenous aircraft carriers, submarines, frigates, corvettes, fast patrol vessels, fast attack craft, and offshore patrol vessels.