In 2023, the Ministry of Defence witnessed significant milestones in the field of defence exports and productions. Defence exports reached an all-time high, surpassing the previous financial year with an additional Rs 3,000 crore. The exports amounted to around Rs 16,000 crore, marking a rise of over 10 times since 2016-17. Indian defence products are now being exported to over 85 countries, showcasing the nation’s design and development capabilities.
The year also saw a remarkable increase in the value of defence production, crossing the figure of Rs one lakh crore for the first time. This achievement reflects the government’s efforts in promoting defence industries and their associations while addressing the challenges faced by them. Several policy reforms were implemented to enhance ease of doing business and integrate Micro, Small, and Medium Enterprises (MSMEs) and start-ups into the defence supply chain.
To further boost indigenous production, the Fifth Positive Indigenisation List (PIL) comprising 98 items was released by the Department of Military Affairs (DMA). The list includes highly complex systems, sensors, weapons, and ammunition to be procured from indigenous sources as per the provisions stated in Defence Acquisition Procedure 2020.
The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, approved proposals worth over Rs 3.50 lakh crore to enhance the operational preparedness of the Armed Forces. Additionally, the Department of Defence Production (DDP) released four PILs consisting of a total of 4,666 items. These initiatives, along with an almost 200% increase in the number of defence licenses issued by the government, have significantly contributed to the growth of the defence sector.
In FY 2023-24, a record 75% of the defence capital procurement budget, amounting to around Rs one lakh crore, will be allocated to the domestic industry. This increase from 68% in the previous year demonstrates the government’s commitment to promoting ‘Make in India’ and self-reliance in the defence sector. The total budget allocated to the Ministry of Defence for FY 2023-24 is Rs 5.94 lakh crore, with a focus on modernisation and infrastructure development.
The year was marked by key achievements in the field of aerospace and aviation. The Hindustan Aeronautics Limited (HAL) Helicopter Factory, India’s largest helicopter manufacturing facility, was inaugurated by Prime Minister Narendra Modi. The facility will initially produce Light Utility Helicopters (LUHs) with plans to scale up production in the future. The LUH is an indigenously developed utility helicopter designed for various roles within the Indian Air Force (IAF).
Furthermore, HAL delivered the first twin-seater Light Combat Aircraft ‘Tejas’ to the IAF. The Tejas aircraft, equipped with advanced technologies and capabilities, will support training requirements and serve as a fighter aircraft when needed. The IAF has already placed an order for 83 Tejas aircraft with HAL.
The Indian Air Force also inducted the first C-295 MW transport aircraft. This medium-lift tactical aircraft, being manufactured through a collaboration between Tata Advanced Systems Limited and Airbus Defence and Space S A, Spain, is capable of operating from unprepared landing grounds. It will replace the existing HS-748 Avro aircraft.
The Ministry of Defence highlighted the dedication of 118 infrastructure projects by the Border Roads Organisation (BRO). Additionally, significant progress was made in the Amarnath Yatra Tracks upgrade and the deployment of women officers in combat roles, marking key milestones in gender inclusivity.
Overall, 2023 has been a memorable year for the Indian defence sector, with remarkable achievements in defence exports, indigenous production, policy reforms, and the allocation of the capital procurement budget. These initiatives contribute to the vision of achieving self-reliance and modernisation in the defence forces, solidifying India’s position as a global player in the defence industry.
