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.
Bharat Earth Movers Limited (BEML)
Established in 1964, BEML stated as a manufacturer of rail coaches & spare parts and mining equipment in Bengaluru. The company has partially disinvested and at present, the Government of India owns 54% of the total equity and 46% is held by Public, financial institutions, foreign institutional investors, banks and employees. BEML’s products are exported to >67 countries.
Read More
Bharat Electronics (BEL)
Established in 1954, BEL engages in manufacturing of specialised electronic equipment requirements of the Indian Defence Services. BEL produces a wide range of equipment for areas such as defence communication, radars, naval systems, c4i systems, weapon systems, homeland security, telecom & broadcast systems, electronic warfare, tank electronics, electro-optics, professional electronic components and solar photovoltaic systems.
Read MoreHindustan Aeronautics Limited (HAL)
Established in 1940, Hindustan Aircraft Limited (HAL) operates as an aerospace and defence company. The company uses international design, under licence, to build and assemble aircraft and engines such as Prentice, Vampire and Gnat. It also designs and develops domestic aircraft. The company, in collaboration with the Inter-Continental Aircraft Company of USA, commenced its business of manufacturing Harlow Trainer, Curtiss Hawk Fighter and Vultee Bomber Aircraft.
Read More
Related News
MOREDefence Clusters
- Karnataka
- Andhra Pradesh
- Madhya Pradesh
- Chhattisgarh
Posters
MORE
DEFENCE MANUFACTURING INDUSTRY IN INDIA
The Indian defence manufacturing industry is a significant sector for the economy. The industry is likely to accelerate with rising concerns of national security
IBEF Campaigns
MORE
Aatmanirbhar Bharat Utsav 2024
Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...
Case Studies
MOREStrengthening Global Ties: India’s Collaborative Trade and Investment Initiatives with Multiple Nations
India’s position in global trade and investment has evolved significantly over the last few decades, transforming into one of the most dynamic e...
E-commerce Revolution in India: Driving Growth in Rural Areas and Reshaping Consumer Behaviour
In recent years, India has witnessed a transformative shift in its economic landscape, fuelled by the rapid growth of the e-commerce sector. The sprea...
India's Electric Vehicle Revolution: Trends, Challenges and Opportunities
The electric vehicle (EV) market around the globe is experiencing significant expansion, as countries aim to reduce carbon emissions and transition to...
IBEF BLOG
MORE
What Economic Reforms are Shaping the Future of FDI in India
India has been one of the most attractive destinations for foreign direct i...
The Future of Packaging: India's Role in Global Paper Packaging Trends
Today’s packaging is no longer just a simple item for protecting good...
Swachh Bharat Mission's Urban and Gramin Success: What’s Driving the Progress?
The Swachh Bharat Mission (SBM), or Swachh Bharat Abhiyan, is one of the la...
Partners
