The growth of 12.04% over 2023-24 reflects the growing acceptability of Indian products in the global market with its ability to be a part of the global supply chain.
Significance for Rising Defence Exports
- Promote Indigenous Defence Production: India's defence production marked a 174% rise (2014-15 to 2023-24) promoting self-reliance.
- Achieving Policy Targets: India targets ₹3 lakh crore in defence production and ₹50,000 crore in defence exports by 2029.
- Catering to International Demand: 92% of the global contracts signed by the Ministry of Defence was awarded to the domestic industry (2024-25).
- Boosting Private Sector Participation: The private sector contributed Rs 15,233 crore in defence exports of 2024-25.
- Diversified export portfolio: Including items like bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, etc., reduce import dependency.
Key Challenges with Defence Export
- Slow Growth in Defence Public Sector Undertakings (DPSUs): Although DPSUs have shown a significant increase of 42.85% in their exports (FY 2024-25), their actual production remained much below the private sector.
- Lack of Technological Depth: Technological Depth needed to design/manufacture major systems and critical parts, components, and raw materials, are eventually imported by India.
- Lag between Policy Announcement and Implementation: Largely impacted due to bureaucratic hurdles.
