Indian Economy News

Defence production crossed the US$ 12 billion (Rs. 1 lakh crore) mark for the first time ever

The value of defence production in FY23 exceeded US$ 12 billion (Rs. 1 lakh crore) for the first time ever, all because of the Ministry of Defence's persistent efforts. The current value of defence production in FY23 (that is US$ 12.98 billion (Rs. 106,800 crore)), witnessed an increase of more than 12% over FY22, when it stood at US$ 11.55 billion (Rs. 95,000 crore).

To overcome the obstacles faced and to advance defence production in the nation, the Government regularly collaborates with the defence industries and their associations. To attain the goal of ease of doing business, a variety of policy reforms have been implemented, including the inclusion of MSMEs and start-ups in the supply chain. These regulations have made it easier for businesses, particularly MSMEs and start-ups, to participate in the design, development, and production of defence products. In the last 7-8 years, the government has granted about 200% more defence licences to businesses. These actions have greatly increased employment prospects while boosting the nation's defence industrial production ecosystem.

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