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.
* Defence exports crossed Rs. 21,000 crore (US$ 2.43 billion) in CY24 with a target of Rs. 50,000 crore (US$ 5.8 billion) by 2029.
* 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
*In February 2025, India has secured a Rs. 3,800 crore (US$ 440.3 million) deal to export BrahMos missiles to Indonesia, showcasing its advanced defense manufacturing capabilities, including the domestic production of aircraft carriers.
Government
Support
*The Union Budget for 2025-26 envisaged an outlay of Rs. 6,81,000 lakh crore (US$ 78.7 billion), represents an enhancement of 9.5% over the Budget of 2024-25.
* 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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