The private sector contributed ₹33,979 crore (22.56%) to India’s total defence production of ₹1,50,590 crore in FY 2024-25, the highest-ever participation since 2016-17.
Defence Production in India
Sectoral Share (FY 2024-25):
- Defence Public Sector Units (DPSUs) → 57.50%
- Ordnance Factories → 14.49%
- Non-defence PSUs → 5.4%
- Private Sector → 22.56%
Defence Budget Expansion:
- Grew from ₹2.53 lakh crore (2013-14) to ₹6.81 lakh crore (2025-26).
Production Milestones:
- Defence output touched a record ₹1.50 lakh crore (2024-25), more than 3 times the 2014-15 level.
- 65% of defence equipment is now indigenously manufactured (earlier import dependence was 65–70%).
- Target: ₹3 lakh crore by 2029 to establish India as a global hub.
Growth in Defence Exports
- Exports grew 34-fold, from ₹686 crore (2013-14) to ₹23,622 crore (2024-25).
- Exported items include bulletproof jackets, helicopters, interceptor boats, lightweight torpedoes.
- India exports to 100+ countries; U.S., France, Armenia were top buyers in 2023-24.
Government Interventions
- Innovation & R&D
- iDEX (Innovations for Defence Excellence): Encourages startups in defence tech.
- ADITI scheme (₹750 crore, 2023–26): Focuses on critical tech like AI, quantum, nuclear, space, and underwater surveillance.
- DTIS: Improves testing facilities for the aerospace & defence sector.
- Industrial Corridors: Defence Industrial Corridors in Uttar Pradesh & Tamil Nadu promote local manufacturing with incentives.
- Indigenisation Push: SRIJAN (2020): Lists imported items for domestic manufacturing to reduce dependency.
- Ease of Doing Business: Defence Product List simplified (2019). Licence validity extended from 3 years to 15 years, with further extension up to 18 years.
Way Forward
- Level Playing Field: Transparent procurement to ensure fair competition between private firms and DPSUs.
- Strengthen Export Base: Expand destinations, support private firms in global markets.
- Boost Startups: Widen iDEX and ADITI coverage for emerging defence domains (AI, cyber, quantum).
- Joint Ventures: Partner with global defence majors for co-development & technology transfer.
- Skill Development: Training programmes for advanced defence technologies to create a specialised workforce.
Conclusion:
India’s growing private sector role in defence reflects a shift towards self-reliance and global competitiveness. Sustained reforms, innovation, and partnerships will be crucial for achieving the ₹3 lakh crore production target by 2029.
