Runway to a billion opportunities opens
The runway is set, the fuel tanks are filled, and the engines are roaring. All that is required is a steep take-off to achieve a challenging target set by Prime Minister Narendra Modi at the inaugural of the 14th edition of Aero India. Over the last five years, India’s defence exports increased six times to reach $1.5 billion. To take it further up significantly, the prime minister has set a target of $5 billion by 2024–25. Although the target fiscal—intentionally or not—corresponds with the next general elections in 2024, Aero India 2023 has proved to be an ideal launch pad in that direction. Financially and strategically, the event is a catalyst to allow India the potential to position herself in the forefront of defence manufacturing and exports in the years to come. It has also provided a potential to beef up its arsenals in the coming years to emerge as formidable in the face of possible adversities.
There is financial muscle in the background: 75% of the defence capital procurement budget—a record—is earmarked for the domestic industry in 2023. This amounts to about Rs 1 lakh crore, raised from 68% from the previous fiscal. Of the total budget of Rs 5.94 lakh crore (13.8% of the total budget of Rs 45.03 lakh crore) for the defence sector, Rs 1.63 lakh crore has been earmarked as capital outlay for defence modernisation and infrastructure development. The not-so-favourable geopolitical situation in the immediate neighbourhood may stand as justification. Business at Aero India 2023 saw a total of 266 partnerships forged and 201 MoUs signed, worth Rs 80,000 crore of investments.
The event has also set defence and military aviation circles abuzz with speculation over USA bringing its most advanced fighter, the fifth-generation F-35 stealth fighter, for an aerial display at Aero India for the first time ever. A top US official explaining the importance of bringing “the leading-edge of US fighter technology” to “showcase the most advanced, capable, lethal, and interoperable weapons systems the US has to offer” has raised speculation a few notches higher.
For India, Aero India 2023 was not only the largest, but arguably the best so far on potential benefits offered. Only time ahead will reveal how well its theme—‘The Runway to a Billion Opportunities’—was exploited.