Context:
India’s defence exports have reached a historic milestone, amounting to Rs 21,083 crore (approximately USD 2.63 billion) in the fiscal year 2023-24. This represents a significant increase of 32.5% compared to the previous fiscal year. Recent data also reveals an impressive 31-fold growth in defence exports over the past decade, when compared to figures from FY 2013-14. This surge underscores India’s growing prowess and competitiveness in the global defence market.
Relevance:
GS III: Indian Economy
Key Statistics on Defense Exports
Growth Over Two Decades:
- A 21-fold increase in defense exports was observed when comparing the periods from 2004-05 to 2013-14 and 2014-15 to 2023-24.
Contribution by Sector:
- The private sector accounted for approximately 60% of defense exports.
- Defence Public Sector Undertakings (DPSUs) contributed to around 40% of the total.
Export Authorisations:
- The number of export authorisations issued to defense exporters saw an uptick in FY 2023-24 compared to FY 2022-23.
Key Drivers Behind the Growth
Policy Reforms:
- Reforms in defense policies have played a pivotal role in fostering growth.
Ease of Doing Business Initiatives:
- Initiatives aimed at simplifying business processes and reducing bureaucratic hurdles have contributed to the sector’s expansion.
Digital Solutions:
- Comprehensive digital solutions have been implemented, enhancing efficiency and transparency within the defense industry.
Global Acceptance:
- The rising global acceptance of Indian defense products and technologies has bolstered the growth of defense exports.
