Advantage India
Growing
Demand
* Demand growth is likely to accelerate with rising concerns of national security.
* Till April 2023, a total of 606 industrial licences were issued to 369 companies operating in the defence sector.
* The Ministry of Defence has set a target of achieving defence exports worth US$ 2.41 billion (Rs. 20,000 crore) for FY24.
* Defence exports US$ 2.63 billion in FY23-24 up by 32.5% from last year.
* Annual defence production hits record high of approx. Rs. 1.27 lakh crore (US$ 15.34 billion) in FY24 up by 16.7% from last year.
Competitive
Advantage
* India’s defence budget of US$ 74.7 billion ranked fourth highest globally in 2024.
* The Government of India opened the defence industry for private sector participation to provide impetus to indigenous manufacturing.
* In the Interim Budget 2024-25, US$ 2.9 billion (Rs. 23,855 crore) was allocated to DRDO, while a corpus of US$ 12.0 billion (Rs. 1 lakh crore) was earmarked for Deep Tech, offering long-term loans to tech-savvy companies to foster innovation in defence technologies within India.
* In the Regular Union Budget of FY25, Ministry of Defence (MoD) has been allocated Rs. 6,21,940.85 crore (approx. US$ 75 Billion), the highest among the Ministries.
Government
support
* Under the Atmanirbhar Bharat Initiative, five positive indigenization lists of 509 products have been promulgated by Department of Military Affairs and Ministry of Defence to be manufactured domestically for the defence sector, instead of being sourced via imports.
* SRIJAN portal launched to promote indigenisation. More than 34,000 items are available for public view and 10,000 items have been indigenized till January 2024.
Opportunities
* Government has established two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu.
* India has around 194 defence tech startups building innovative tech solutions to empower and support the country’s defence efforts.
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