Defense Production Soars to Record Rs 1.27 Lakh Crore in FY 2023-24

The Ministry of Defence has achieved its highest-ever growth in Indigenous defense production in terms of value during Financial Year (FY) 2023-24, thanks to the successful implementation of the policies and initiatives of the Government, led by Prime Minister Shri Narendra Modi, focusing on achieving ‘Aatmanirbharta’. As per the data received from all Defence Public Sector Undertakings (DPSUs), other PSUs manufacturing defense items as well as private companies, the value of defense production in the country has gone up to a record-high figure i.e., Rs 1,26,887 crore, reflecting a growth of 16.7% from the previous financial year. The value of defense production in FY 2022-23 was Rs 1,08,684 crore.

Acknowledging the achievement through a post on X, Raksha Mantri Shri Rajnath Singh stated that the ‘Make in India’ programme is crossing new milestones, year after year, under the leadership of Prime Minister Shri Narendra Modi. He voiced the Government’s unwavering resolve to develop India as a leading global defense manufacturing hub.

Of the total value of production (VoP) in 2023-24, about 79.2% has been contributed by DPSUs/other PSUs and 20.8% by the private sector. The data shows that in terms of absolute value, both DPSUs/PSUs and the private sector have recorded a steady growth in defense production. Shri Rajnath Singh congratulated the industry for raising the defense production to an all-time high.

The feat has been achieved due to the policy reforms/initiatives and ease of doing business brought in by the Government in the last 10 years with focus on attaining self-reliance. The indigenisation efforts have been pursued aggressively on a sustained basis, resulting in the highest ever VoP. Moreover, the spiraling defense exports have contributed tremendously to the overall growth of indigenous defense production. It may be recalled that defense exports touched a record-high of Rs 21,083 crore in FY 2023-24, reflecting a growth of 32.5% over the last fiscal year when the figure was Rs 15,920 crore.

In the last five years (since 2019-20), the value of defense production has been increasing steadily, and grown by over 60%.