India’s Defence production crosses Rs 1 lakh crore mark in a historic feat

In a landmark achievement for India, the value of defence production in the Financial Year (FY) 2022-23 has crossed the figure of Rs one lakh crore for the first time ever. The government said the defence production value currently stands at Rs 1,06,800 crore, expected to mount further when remaining private defence industries share their data. 

In comparison to FY 2021-22, when the value of defence production was Rs 95,000 crore, FY 2022-23  has seen a rise of more than 12 per cent. The official statement reads, "The Government is continuously working with defence industries and their associations to remove the challenges faced by them and promote defence production in the country."

According to the statement, the landmark milestone has been achieved through the introduction of a number of policy reforms that ensured the objective of ease of doing business. The induction of start-ups and Micro, Small and Medium Enterprises (MSME) into the supply chain of defence products have also contributed to achieving the significant feat, the official statement claimed. 

"Due to these policies, the industries, including MSMEs and start-ups, are forthcoming in defence design, development and manufacturing and there is almost a 200 per cent increase in the number of defence licenses issued to the industries in the last 7-8 years by the Government. These measures have given a boost to the defence industrial manufacturing ecosystem in the country and generated tremendous employment opportunities," it added. 

Boost to defence manufacturing 

In the past few years, the persistent efforts in the implementation of the Make in India programme in the defence sector have proved to be crucial in promoting indigenous design and manufacturing of defence equipment. To give a long-term boost to the defence sector, the government has also increased Foreign Direct Investment (FDI) in Defence Sector by up to 74 per cent through the Automatic Route for the companies that seek new defence industrial licences.