NEW DELHI: India’s rising production of defence equipment and systems is changing its narrative as the world’s second-largest arms importer. The Economic Survey 2024 highlights that India’s defence production grew substantially from Rs 74,054 crore in FY17 to Rs 108,684 crore in FY23, boosting defence exports.
Between 2015 and 2019, India was known as the world’s second-largest arms importer. However, the narrative has shifted, as detailed in the Economic Survey. It states, “India has transitioned from being an arms importer to securing a place in the list of the top 25 arms-exporting nations.”
The survey credits the defence industry’s efforts, including those of private sectors and Defence Public Sector Undertakings (DPSUs), for achieving the highest-ever defence exports. Additionally, there has been a rise in the number of export authorizations issued to defence exporters.
“In FY23, there were 1,414 export authorizations, which increased to 1,507 in FY24. About 100 domestic companies are exporting a wide range of defence products and equipment, including aircraft like Dornier-228, artillery guns, BrahMos Missiles, Pinaka rockets and launchers, radars, simulators, and armoured vehicles,” the survey reports.
To boost defence exports, the government has implemented several policy initiatives over the past ten years. Export procedures have been simplified and made industry-friendly, with end-to-end online export authorization reducing delays and facilitating ease of business. Further, the Aatmanirbhar Bharat initiatives have encouraged indigenous design, development, and manufacture of defence equipment, thereby reducing dependency on imports in the long run.
The policy push towards indigenization includes lists of items that will cease to be imported in a staggered timeline. Additionally, the government is allocating funds to support private manufacturers in the defence sector.
However, despite the push for self-reliance, India remains the top arms importer, indicating its dependence on imported arms and equipment.
The Sweden-based Stockholm International Peace Research Institute (SIPRI) reported in March 2024, “India’s arms imports increased by 4.7 percent between 2014-18 and 2019-23. Although Russia remained India’s main arms supplier (accounting for 36 percent of its arms imports), this was the first five-year period since 1960-64 when deliveries from Russia (or the Soviet Union prior to 1991) made up less than half of India’s arms imports.
Exports are now Industry friendly
To boost defence exports, the government implemented several policy initiatives in ten years. Export procedures have been made industry-friendly, with end-to-end online export cutting delays and facilitating ease of business. Govt is allocating funds to support the defence sector.