Defence Production in India Surpasses ₹1 Lakh Crore Mark on the Back of Crucial Reforms

India’s defence sector has achieved a significant milestone as the value of defence production surpassed ₹1 lakh crore for the first time. This achievement highlights the success of key reforms implemented to boost growth and reduce dependence on military imports, positioning India as an exporter of weapons and systems.

Steady Growth and Reform Initiatives

Over the past five years, the value of defence production in India has nearly doubled, reaching ₹1,06,800 crore in the financial year 2022-23. This steady growth can be attributed to the Defence Ministry’s consistent efforts and the implementation of crucial reforms. These reforms include banning certain imports, allocating a separate budget for local procurement, increasing foreign direct investment, and improving the ease of doing business.

Positive Results and Self-Reliance

India’s focus on defence manufacturing has yielded encouraging results, with a 12% growth compared to the previous year. The country produces a wide range of weapons and systems, showcasing its potential in the sector. To enhance self-reliance, India has banned imports of fighter jets, warships, and artillery guns while focusing on the indigenization of sub-systems and components. The government has published lists of items to be indigenized, and import substitution of ammunition is a priority.

Boosting Defence Exports and Ease of Doing Business

India has made significant strides in boosting its defence exports, with military hardware worth ₹15,920 crore exported in FY 2022-23, a tenfold increase since 2016-17. The country exports to around 85 countries, with a diverse product range. The Indian government has actively worked on promoting ease of doing business, integrating MSMEs and start-ups into the supply chain, and removing hurdles for defence production.

Future Outlook and Targets

India’s defence production is expected to continue growing with ongoing reforms and increased participation from private defence firms. The corporatization of the Ordnance Factory Board has further enhanced efficiency and competitiveness. The government aims to achieve a turnover of ₹1,75,000 crore in defence manufacturing by 2024-25, expressing confidence in reaching this target based on the current pace of indigenization.

Defence Production in India – FAQs

Q1: What is the significance of India’s defence production surpassing ₹1 lakh crore?

Ans: A noteworthy accomplishment that shows India’s advancement in the defence industry is the country’s defence output reaching one lakh crore. It illustrates the effectiveness of significant measures carried out to increase growth and lessen dependency on military imports.

Q2: How has the value of defence production in India changed over the past five years?

Ans: Over the last five years, India’s manufacturing of defence goods has almost doubled in value. It increased significantly over the previous five years, reaching 1,06,800 crore in the fiscal year 2022–2023 from 54,951 crore.

Q3: What reforms have contributed to the growth of India’s defence production?

Ans: The government’s numerous reforms can be blamed for the increase in India’s defence output. Among these measures are the aforementioned import restrictions on specific weapons and systems, the establishment of a separate budget for domestic purchases, an increase in foreign direct investment, and an ease of doing business.


  • Pritipalit

    Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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