India's defence industry is evolving, with a strong focus on self-reliance and export potential. Defence Minister Rajnath Singh highlighted the government's commitment to transforming the country into a global hub for defence manufacturing, while addressing the annual session of the Society of Indian Defence Manufacturers (SIDM).
This commitment was reinforced by the record defence production of Rs 1.27 lakh crore during the financial year 2023-24. The Defence Minister emphasised the importance of an export-oriented defence industry and a robust manufacturing base.
With the ongoing Russia-Ukraine conflict as a backdrop, Singh reminded stakeholders of the need to develop a resilient and expandable defence industrial base. This necessity has led the government to focus on boosting the domestic defence industry, encouraging both public and private sectors to contribute to the overall growth.
Of the total defence production in FY 2023-24, Rs 1 lakh crore came from Defence Public Sector Undertakings (DPSUs), while private companies contributed Rs 27,000 crore.
Singh underlined the government's intention to strengthen the existing defence ecosystem by promoting innovation and enhancing self-reliance. This approach aims to foster an environment that supports a sustainable defence industry capable of fulfilling the needs of the armed forces.
An essential part of this strategy is the introduction of ten positive indigenisation lists (PILs), comprising more than 5,500 items. The aim is to ensure that the armed forces are equipped with platforms and equipment manufactured within India.
The minister urged the defence industry to take ownership of these indigenisation efforts by achieving self-reliance for the listed items and identifying new products to be added. Singh stressed that the industry must be proactive in adapting to rapid changes in the defence sector globally.
The Defence Minister also recognized the improvements made in creating a favourable business environment within India. This improved climate aims to make it easier for companies to operate and invest in defence production.
Singh lauded the role of the private sector in pushing defence exports to a record high of over Rs 21,000 crore in FY 2023-24. He expressed confidence in the capacity of the domestic industry to take India further on its journey towards becoming a significant global defence exporter.
To enhance India’s defence export capability, the government is also focused on attracting foreign companies and original equipment manufacturers (OEMs) to invest in India.
Singh called on SIDM to devise a roadmap for firm-to-firm collaboration with foreign partners, encouraging joint ventures that would bring technological expertise and boost local production capabilities.
He pointed out that the involvement of foreign companies, through partnerships with local manufacturers, could expedite the process of making India a significant player in the global defence market.
Singh further highlighted the importance of investment in advanced technologies like artificial intelligence (AI), cyber defence, and autonomous systems. As the global defence sector undergoes technological transformations, Singh believes that the Indian industry must be ahead of the curve.
By investing in cutting-edge technologies, the Indian defence sector can ensure its relevance and competitiveness on the world stage. The Minister urged private players to take a leading role in research and development to drive innovations in these emerging domains.
The government’s focus on indigenisation and export growth is also reflected in the creation of defence corridors in Uttar Pradesh and Tamil Nadu, providing incentives to manufacturers and encouraging the development of a thriving defence ecosystem in these regions.
These corridors are intended to become hotspots for defence production, leveraging local talent and infrastructure to bolster defence capabilities. Singh’s remarks point to the government’s commitment to making these defence corridors successful and instrumental in contributing to the larger defence manufacturing vision.
The Defence Minister also took the opportunity to appreciate the increased involvement of private players in the sector. While DPSUs have traditionally dominated India’s defence production, Singh acknowledged that private companies have played a key role in pushing the boundaries, particularly in achieving higher defence exports.
The collaboration between public and private entities has contributed significantly to the growth of India's defence sector, and Singh highlighted the need for further strengthening these partnerships to ensure long-term sustainability.
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