Indian Economy News

Defence, aerospace exports have increased to US$ 1.54 billion (Rs. 12,815 crores) in five years: Government

  • IBEF
  • December 20, 2022

Defence and aerospace exports have increased to US$ 1.54 billion (Rs. 12,815 crores) in 2021-22 from US$ 565 million (Rs. 4,682 crores) in 2017-18. During the same period, foreign procurement in defence has increased to US$ 6 billion (Rs. 50,601 crores) from US$ 4.47 (Rs. 37,030 crores).

The Defence Ministry stated that there has been good progress in the defence’s innovation ecosystem, titled ‘Innovations for Defence Excellence’ (iDEX). This scheme was launched in April 2018 in order to enhance the innovation and technology development in the defence and aerospace sectors, by associating industries like medium, small and micro enterprises (MSMEs), start-ups, and research and development (R&D). Under the scheme, 233 problems have been identified, 310 start-ups have been engaged, and 140 contracts have been signed. Additionally, an ‘iDEX Prime’ scheme has also been established in 2022 which would support start-ups with grants-in-aid up to US$ 1.2 million (Rs. 10 crores).

To achieve Aatmanirbharta (self-reliance) and realise the goal of ‘Make in India,’ the MoD cited the establishment of two Defence Industrial Corridors (DICs) – one in Uttar Pradesh and other in Tamil Nadu, the Ministry of Defence said. Six nodes in Uttar Pradesh have been identified for developing the Uttar Pradesh Defence Industrial Corridor (UPDIC) and five nodes have been identified for Tamil Nadu Defence Industrial Corridor (TNDIC).

It was further informed that seven new defence public sector undertakings (DPSU’s) have been made from the former Ordnance Factory Board (OFB), which have been incorporated as government companies under the Companies Act 2013 in 2021. The government has taken some steps to support these new defence companies and the OFB’s outstanding purchase orders have been converted into deemed contracts valuing about US$ 8.55 billion (Rs. 70,776 crores) for the next five years. The DPSUs are looking at export opportunities through interaction with Defence Attached at Indian embassies and missions abroad.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.