- This indicated that defence exports have grown by 31 times in last 10 years as compared to FY 2013-14 and growth of 32.5% over FY 2022-23.
- Also, number of export authorisations rise to 1,507 in FY 2023-24.
- Private sector contributed about 60% in defence exports.
- Significance of Growth in Defence exports
- Enhances Self-reliance in defence by increasing defence manufacturing capabilities.
- Encouraging use of new technology.
- Integration with Defense value chain by exporting to major countries like Italy, Nepal, etc.
- Enhancing diplomatic relations between countries, strengthen strategic partnerships, and fostering cooperation in defense.
- Challenges with Defence Export
- Large orders are required to ensure profitability given high costs of manufacturing armaments.
- Delays in export clearances decreasing competitiveness of Indian defence products.
- Initiatives taken to promote Defence exports
- Foreign Direct Investment was enhanced upto 74% through automatic route.
- Innovation for Defence Excellence (iDEX) to achieve self - reliance and foster innovation and technology development in Defence.
- Defence Acquisition Procedure (DAP 2020) increased Indigenous Content in various categories of procurement (refer table).
- Establishment of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu.
| Category | Indigenous Content |
| Buy (Indian- – Indigenously Designed Developed and Manufactured) i.e. Buy (Indian- IDDM) | Indigenous design and ≥ 50% |
| Buy (Indian) | In case of indigenous design ≥ 50%, otherwise≥ 60% |
| Buy and Make (Indian) | ≥ 50% of the ‘Make’ portion |
| Buy (Global - Manufacture in India) | ≥ 50% |
| Buy (Global) | Foreign Vendor –Nil Indian Vendor ≥ 30% |