India’s Defence Exports Soar to Rs 210 Billion in 2024
India’s defence exports have surged from Rs 15 billion in 2017 to Rs 210 billion in 2024, registering a CAGR of 46%, according to a report on ‘Defence Conference 3.0’ by Antique Stock Broking.
The report highlighted that the global shift towards a China+1 strategy and the impact of the Russia-Ukraine war offer India additional opportunities to fill supply chain gaps, potentially boosting its share in the global defence industry.
India’s long-term goal to become a global defence manufacturing hub is driven by Defence Public Sector Undertakings (DPSUs), private enterprises, start-ups, and MSMEs. The report emphasized the importance of a well-developed domestic ecosystem to achieve this target, as lower import content in products accelerates approvals by reducing international conflicts.
The Ministry of Defence has taken key initiatives to attract Indian private players and global Original Equipment Manufacturers (OEMs), including establishing aerospace parks and defence corridors, fast-tracking project approvals, and enhancing development and testing facilities.
The report also highlighted the potential in India’s Maintenance, Repair, and Overhaul (MRO) segment, which holds significant potential for global aerospace companies due to its technical expertise and cost-competitive solutions.
India aims to increase domestic defence turnover to Rs 3 lac crore by 2029, with Rs 500 billion targeted for exports. This growth will help reduce the Government of India’s import bill as India remains the world’s largest importer of defence equipment. Under the Atmanirbhar Bharat initiative, 75% of the defence capital outlay is now reserved for domestic players, up from 49% in FY21.
Given the geopolitical challenges and modernization needs of its Armed Forces, India plans to invest Rs 8.3 lac crore in domestic procurement, offering substantial business opportunities for local companies.
According to the Ministry of Defence, India’s defence manufacturing sector witnessed an increase of 16.8% in the fiscal year 2023-24, marking the highest-ever growth in the country’s defence production value. The total value of defence production reached Rs 1,26,887 crore this year, up from the previous year’s figures.
Doubts Revealed
Defence Exports -: Defence exports are when a country sells military equipment and technology to other countries. This can include things like weapons, tanks, and aircraft.
Rs 210 Billion -: Rs 210 billion means 210,000,000,000 rupees. It’s a very large amount of money, showing how much India earned from selling defence items in 2024.
CAGR -: CAGR stands for Compound Annual Growth Rate. It shows how much something has grown each year, on average, over a period of time.
Antique Stock Broking -: Antique Stock Broking is a company that helps people buy and sell stocks. They also create reports about different industries, like defence.
China+1 strategy -: The China+1 strategy is when companies don’t rely only on China for manufacturing. They also set up factories in other countries, like India, to avoid problems if something goes wrong in China.
Russia-Ukraine war -: The Russia-Ukraine war is a conflict that started in 2022 between Russia and Ukraine. It has affected many countries and industries, including defence.
Ministry of Defence -: The Ministry of Defence is a part of the Indian government that takes care of the country’s military and defence matters.
Domestic manufacturing -: Domestic manufacturing means making products within your own country instead of buying them from other countries.
Rs 3 lac crore -: Rs 3 lac crore means 3,00,000 crore rupees. It’s a huge amount of money, showing India’s target for making defence items by 2029.
Defence turnover -: Defence turnover is the total amount of money earned from making and selling defence items in a year.
Rs 1,26,887 crore -: Rs 1,26,887 crore means 1,26,887,00,00,000 rupees. It’s the total money earned by India’s defence sector in 2023-24.