Driven By Global Shifts India’s Defense Exports Surge
NEW DELHI, (ANI) – India’s defense exports have skyrocketed from Rs 15 billion in 2017 to Rs 210 billion in 2024, reflecting a compound annual growth rate (CAGR) of 46%, according to a report on the ‘Defense Conference 3.0’ by Antique Stock Broking. The report highlights that the global shift towards a China+1 strategy, coupled with the impact of the Russia-Ukraine war, offers India significant opportunities to fill supply chain gaps and enhance its share in the global defense industry.
India’s long-term goal is to become a global defense manufacturing hub, with contributions from Defense Public Sector Undertaking, private enterprises, start-ups, and MSMEs. The report emphasizes the importance of a well-developed domestic ecosystem to achieve this, as reducing import content in products can accelerate approvals by minimizing international conflicts.
Key initiatives by the Ministry of Defense, including the establishment of aerospace parks and defense corridors, fast-tracking project approvals, and enhancing development and testing facilities, have been instrumental in attracting Indian private players and global Original Equipment Manufacturers.
The report also underscores the potential of India’s Maintenance, Repair, and Overhaul (MRO) segment, which offers significant opportunities for global aerospace companies due to India’s technical expertise and cost-competitive solutions.
India aims to increase its domestic defense turnover to Rs 3 lakh crore by 2029, with Rs 500 billion targeted for exports. This growth is expected to reduce the government’s defense import bill, as India remains the world’s largest importer of defense equipment.
75% of the defense capital outlay is now reserved for domestic players, up from 49% in FY21. Given the geopolitical challenges and the modernization needs of its Armed Forces, India plans to invest Rs 8.3 lakh crore in domestic procurement, presenting substantial business opportunities for local companies.
In FY 2023-24, India’s defense manufacturing sector saw a 16.8% increase in production value, reaching Rs 1,26,887 crore, marking the highest-ever growth in the country’s defense production.
