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Guns N' Growth: Inside defence sector's explosive Make-In-India story SECTIONS Guns N' Growth: Inside defence sector's explosive Make-In-India story ET OnlineLast Updated: Apr 03, 2024, 02:56:00 PM IST FOLLOW US SHAREFONT SIZESAVEPRINT2COMMENT Synopsis India's 'Make in India' defence production success story is evident in record-breaking defence exports, reaching Rs 21,083 crore in 2023-24, a growth of 32.5% from the previous fiscal. With a focus on indigenisation, India aims to triple annual defence production by 2028-29 and double defence exports to Rs 50,000 crore. iStock The 'Make in India' programme has nowhere reflected so successfully as in defence production. In less than a decade, India not only indigenised the manufacturing of a very large number of defence items but also turned into an arms exporter. A striking feature of this success story is that public-sector units (PSUs), which had become known for inefficiency and tardiness, have played a great role in this story. The rocketing numbers A few days ago, Defence Minister Rajnath Singh congratulated all stakeholders on crossing a big milestone in defence exports: India's defence exports have touched a record Rs 21,083 crore (approximately $2.63 Billion) in the financial year 2023-24, a growth of 32.5% over the last fiscal when the figure was Rs 15,920 crore. If the last decade is compared with the previous one, the growth picture gets more dramatic — defence exports have grown by 21 times in the last decade, from Rs 4,312 crore during 2004-05 to 2013-14 to Rs 88,319 crore from 2014-15 to 2023-24. This explosive growth is fuelled by a strong indigenisation push by the government aimed at achieving self-reliance in defence when India seeks a bigger strategic role for itself in the world even as it races to become the world's third-largest economy. The rapid growth in defence manufacturing and exports have powered many PSU defence stocks to new highs. Though the private sector has led the growth, defence PSUs too have made significant contributions. The private sector and the PSUs have contributed about 60% and 40% respectively.

The Indian Army has significantly reduced its dependency on imported ammunition through the 'Make in India' policy. By leveraging private sector capabilities and public sector firms, the Army aims to cease most ammunition imports within a few years. This shift not only cuts import costs but also enhances export potential. India has substantially enhanced its defense capabilities over the past decade, with a focus on indigenous manufacturing and reducing reliance on arms imports. Around 60% of India's arms and ammunition are now domestically produced, with major corporations like Adani, Tata, and L&T contributing to radar systems and gun manufacturing. Nomura's 'India Defence' report projects a substantial $138 billion ordering opportunity in India's defence sector over FY24-32, driven by rising demand for equipment and services. Defence capital expenditure is expected to surge to 37% of the total budget by FY30, supported by government policies promoting indigenous manufacturing and technology development. The Indian Coast Guard and Jindal Steel & Power have signed an MoU to enhance the supply of indigenous marine-grade steel for shipbuilding projects. This collaboration aligns with the government's 'Make in India' and 'Atmanirbhar Bharat' initiatives, aiming to boost self-reliance in the defence sector. The Indian government has issued a request for proposal to Hindustan Aeronautics Limited (HAL) to procure 156 Light Combat Helicopters worth Rs 45,000 crore, in line with the 'Make in India' initiative.

Bharat 🇮🇳 takes a huge step towards self-reliance for national security! The Indian Army has announced that it will no longer import ammunition from the next financial year. This is a matter of pride for all Indians as our armed forces will no longer have to rely on ammunition imports to fight. One of my friends in the service career was responsible for managing ammunition for the training of Artillery units. They had prepared the requirement matrix of different types of ammunition needed to carry out the annual training of a large force. Due to a shortage of critical fuzes, which were procured from friendly foreign countries, the annual training was cut down by 75%, impacting the battle readiness of the nation. The shortage continued year on year as we depleted our war reserves for training. This problem is history now, as New India prepares to take a plunge into ammunition exports. The ammunition market size is approximately $ 90.07 bn. With this recent announcement, India's domestic defense manufacturing enterprises will benefit immensely, apart from job creation. Once India has surplus ammunition, it can also export it to boost forex reserves. This is a momentous occasion, and we should all celebrate it and continue to work towards making India self-reliant in all aspects of national security. Let's use this as an opportunity to promote #india #SelfReliance, #NationalSecurity, #MakeInIndia, #Ammunition, #IndianArmy, #bharat #startupindia. 🇮🇳

India's defense industry was entirely dependent on imports until 2014, when it began to grow rapidly over the next ten years. In a similar vein, India's defense export revenue increased 23 times in just 9 years, from 686 crore in 2014 to Rs 16,000 crore in 2023. The picture below is very powerful endorsement , in my perspective, and it shouldn't come as a surprise if our exports increase significantly from where they are now.

Indian Defense Exports Touch $2.63B in Fiscal 2024 https://lnkd.in/gykysVcd #IndianDefenseExports #FinancialYear2023-24 #RecordGrowth #DefenseMinister #RajnathSingh #SocialMedia #PrivateSector #DPSUs #ExportAuthorizations #GlobalDemand #PolicyReforms #EaseofDoingBusiness #DigitalSolutions #IndianIndustries

Indian Defense Exports Touch $2.63B in Fiscal 2024 https://lnkd.in/g3g985Fi #IndianDefenseExports #FinancialYear2023-24 #RecordGrowth #DefenseMinister #RajnathSingh #SocialMedia #PrivateSector #DPSUs #ExportAuthorizations #GlobalDemand #PolicyReforms #EaseofDoingBusiness #DigitalSolutions #IndianIndustries

#makeinindia #makefortheworld Sharing an interview of mine by #sputniknews on #india's prospects as emerging exporter of military hardware. #majorgeneralsbasthana Interview by #pawanatri. Some Excerpts:- -"Many countries produce 155mm ammunition, including Western nations but their ammunition is costly. On the other hand, India is manufacturing it at a reasonable cost compared with the West, and therefore Saudi Arabia, UAE, and other sovereign states in the Middle East and Central Asia are banking on India to supply this ammunition to them," Asthana told Sputnik India on Thursday. -"India has been a late starter as far as defense production is concerned but New Delhi's exports of military items have risen almost 23 times from just over $80 million to nearly $2 billion in the last ten years". -India will be able to compete because of cheap labor and technological young manpower. He expressed that these two advantages can place the South Asian nation in a much better position for defense exports. https://lnkd.in/gVbiZ_qt

In a significant development for India's defense industry, Major General V K Sharma, ADG (Procurement) of the Indian Army, announced plans to halt all ammunition imports starting in the fiscal year 2025-26. This decision, highlighted at a seminar on ammunition production organized by the PHD Chamber, underscores India's growing capacity to meet its defense needs domestically. The move aligns with the Make-in-India initiative, signaling a shift towards boosting indigenous manufacturing capabilities. Previously, India has been the world's largest importer of arms, as per the Stockholm International Peace Research Institute (SIPRI). However, this announcement marks a significant policy transformation. According to Major General Sharma, indigenous suppliers have now been secured for nearly 150 out of 175 types of ammunition utilized by the Indian Army. This shift towards local sourcing aims to substantially reduce the country's reliance on foreign imports, which typically amount to Rs 6,000 to Rs 8,000 crore annually. This transition is facilitated by the Ministry of Defence's publication of five positive indigenization lists, identifying items suitable for domestic production and thereby excluded from import. Such strategic measures have encouraged private sector involvement in defense manufacturing. In line with these efforts, the Adani Group recently inaugurated Asia's largest ammunition complex in Kanpur in February 2024. This facility is poised to manufacture a wide range of munitions, including artillery shells, rockets, and missiles. Additionally, the Tata Group has commenced assembly operations for the Airbus C-295 transport aircraft, positioning itself as India's premier private aircraft manufacturer alongside the state-owned Hindustan Aeronautics Limited. These developments underscore the growing momentum in India's defense production capabilities, reflecting the nation's commitment to bolstering military autonomy and enhancing its industrial defense base. #india #country #reliance #foreignimport #defense #momentum #military #Hindustanaeronauticlimited #rockets #missiles #airbus #tatagroup #thecordbharat