Defence Minister Rajnath Singh announced on Friday that India’s defence manufacturing sector has seen a rise of 16.8 percent in the fiscal year 2023-24. This increase marks the highest-ever growth in the country’s defence production value, which reached Rs 1,26,887 crore this year, up from the previous fiscal year.
Singh underscored the achievements of the Make in India initiative under Prime Minister Narendra Modi’s leadership. He highlighted, “India has registered the highest ever growth in the value of defence production in 2023-24. The value of production has reached Rs. 1,26,887 crore, which is 16.8% higher than the previous year.”
The Defence Minister congratulated Public Sector Undertakings (PSUs) and the private sector for their contributions to this milestone. He reiterated the government’s commitment to fostering India as a prominent global defence manufacturing hub. “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,” Singh added.
The central government has set ambitious targets for indigenous defence manufacturing, aiming to achieve a production worth Rs 1,75,000 crore, including defence exports valued at Rs 35,000 crore, by the fiscal year 2024-25. Policy reforms have been implemented to enhance ease of doing business, integrating micro, small, and medium enterprises (MSMEs) and startups into the defence supply chain.
In FY 2023-24, India’s defence exports reached a record Rs 21,083 crore (approximately USD 2.63 billion), marking a significant growth of 32.5 percent from the previous fiscal year’s Rs 15,920 crore. Over the past decade, defence exports have surged by 31 times compared to 2013-14.
Following the announcement, Hindustan Aeronautics Limited shares rose by over 1.5 percent to Rs 5,601 on Friday. Indian defence PSUs have seen substantial equity returns in recent years, bolstered by new orders and expansions in production capacity.