Defence Budget 2024: India’s defence exports skyrocket to $2.5 billion in 2023-24: Marks a 30-fold leap over past ten years
The Ministry of Defence (MoD) data highlighted a remarkable increase in India’s annual domestic defence production, which reached nearly Rs 1.27 trillion in FY24, a 16.7% rise from Rs 1.09 trillion in the previous fiscal year. This surge is attributed to substantial efforts by both the private defence sector and defence public sector undertakings.Increase in Export Authorisations
The Economic Survey reported a rise in the number of export authorisations issued to defence exporters. The number of authorisations grew from 1,414 in FY23 to 1,505 in FY24, representing a growth of approximately 6.6% year-on-year. This increase has facilitated the expansion of India’s defence exports.Diverse Range of Defence Exports
India’s defence industry, comprising around 100 domestic companies, exports a wide variety of products and equipment. These include Dornier-228 aircraft, BrahMos supersonic cruise missiles, Pinaka multi-launch rocket systems, Akash air defence missiles, artillery guns, radars, simulators, and armoured vehicles. The diversity and quality of these exports have contributed significantly to India’s standing among the top 25 arms exporter nations.
TOI.inKey Export Destinations
While the Economic Survey did not specify all the countries importing Indian defence products, the former Soviet republic of Armenia has emerged as a notable destination. Deals have been signed for the export of Pinaka rockets and Akash air defence missiles to Armenia.
Efforts and Initiatives
The Economic Survey credited the “tremendous efforts” by both the private defence sector and defence public sector undertakings for achieving the highest-ever defence exports. It highlighted that “over the past ten years, the government has given defence exports a push through several policy initiatives, including simplifying export procedures and making them industry-friendly, and reducing delays and facilitating ease of doing business through end-to-end online export authorisation.”
Strategic Shift
Despite the growth in exports, India remains the world’s largest arms importer, accounting for 9.8% of total global imports between 2019 and 2023. The Economic Survey noted, “Between 2015 and 2019, India held the distinction of being the world’s second-largest arms importer. The narrative, however, has changed. India has transitioned from an arms importer and found a place in the list of the top 25 arms exporter nations.”
Long-term Vision
The ‘Aatmanirbhar Bharat’ initiatives have played a crucial role in encouraging the indigenous design, development, and manufacture of defence equipment. These initiatives aim to reduce India’s dependency on imports in the long run by fostering self-reliance in the defence sector. The Economic Survey added, “The ‘Aatmanirbhar Bharat’ initiatives have helped the country by encouraging indigenous design, development and manufacture of defence equipment, thereby reducing dependency on imports in the long run.”
The Economic Survey 2023-24 underscores India’s significant progress in the defence sector, highlighting the country’s record-high defence exports and increased domestic production. With continued efforts from both the private and public sectors, supported by strategic government policies, India is poised to enhance its self-reliance in defence production while balancing its position as a major arms importer with rising exports.
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