At ₹1.46 lakh crore for FY 2024–25, defence production in India is at an all-time high and a national conference to be held in New Delhi will discuss how to sustain the momentum through exports, indigenisation and state-level industrial collaboration. The conference, which was opened by Defence Minister Rajnath Singh at Vigyan Bhawan will bring policy coordination with States/UTs in focus and launch new digital platforms for defence industry mapping.
Record output, rising exports
India’s indigenous production in defence reached ₹1.46 lakh crore in FY2024–25 up from ₹1.27 lakh crore in FY2023–24, indicative of a strong momentum towards indigenization under Aatmanirbhar Bharat and Make in India policy initiatives. Defence exports too touched a record ~₹24,000 crore in the same period, up from just ₹600-700 crore a decade ago, serving as evidence of growing global market access for Indian platforms and subsystems. The private sector invested more than ₹32,000 crore in output, indicating an increased diversification of industry beyond DPSUs to high value manufacturing/ assemblies/sub-systems.
Conference focus areas
The national conference on “Opportunities in Defence manufacturing in the Country” is aimed at aligning various initiatives of the State Governments to provide further boost for Make in India, will be attended by senior officials of all States and UTs meeting with the Ministry of Defence. The discussions will be around indigenisation pipes, export enablement, MSME-connect and investment facilitation — creating one policy ecosystem at the federal level in order to maintain double-digit growth. The focus of the agenda is on eliminating frictions across licensing, land, logistics, skilling and testing ecosystems to facilitate a rapid scale up in production.
New digital platforms
According to the Ministry’s schedule for the event, two digital initiatives will be unveiled to promote ease of doing business in defence manufacturing and trade. The Defence Exim Portal will facilitate the export clearance of the defence goods and services, including SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) items such as arms and ammunition through a single-window interface with industry. The Defence Establishments and Entrepreneurs Platform (DEEP) repository will map capabilities and products of the Indian defence industry, which will help in discovery, vendor development as well as supply chain localisation.
Strategic publications
The conference will also publish two flagship publications that normalize and spread policy and innovation stories throughout the country to help states and industry grow. These are the Aerospace & Defence Sector Policy Compendium of States and Union Territories and iDEX Coffee Table Book “Shared Horizons of Innovation” on emerging technologies and start-ups in defence. The releases, which are intended to provide guidance on policy making, cluster evolution and cross-state benchmarking for quicker scaling up of best practices.
What drove the surge
Policy reforms of the last years—procurement category tinkering, import negative lists and incentives—have taken demand away from foreign suppliers and increased vendor bases. They are complemented by ease-of-doing-business measures such as digital workflows and simplified approvals which have slashed cycle times even as they have fortified regulatory and quality regimes. Greater private sector involvement and co-development models have expanded capacity, with continued YY growth in DPSUs and private industry production.
Private sector’s expanding role
Private production was now about 22–23 per cent of the value of production, with some ₹32,000 crore and rising- owing to the scale at which complex subsystem manufacturing and exports were taking place. Participation options are increasing, which encompass the AMCA execution model that allows for private sector participation in addition to DPSUs in large programmes, it has ability to create Supply Chains of advanced aerostructures / Avionics. The MSME sectors are being connected more and more with tiered supply models, increasing localisation in materials, electronics and high precision components.
States and clusters
With the focus of the conference being coordination with States/UTs, look forward to increased thrust on Defence Corridors testing infrastructure and skilling as per requirements of Oems. Aggregated summary of state policies presents a consolidated view of incentives and facilities, which allows investors to easily locate the most competitive clusters for aerostructures, land systems, shipbuilding and electronics. Harmonized standards and expedited clearances at the state level can have a material impact on how long it takes to execute an order and its cost.
Export enablement
The Defence Exim Portal is aimed at cutting red tape in export approvals — a critical move if the present export momentum of over ₹24,000 crore is to be maintained. Predictable authorisations will also help speed up contract conclusion and establish credibility with foreign customers when Indian companies deliver radars, avionics, self protective suites and maritime systems to various countries. The platform also ensures adherence to destination controls and end-use monitoring, enhancing India’s credentials as a responsible exporter.
Sustaining growth: the road ahead
In order to maintain a trajectory of high growth, we have proposals for increased R&D co-development alongside greater testing and certification capacity while safeguarding timely payments and stable procurement pipelines, say industry captains. We are going to have to build domestic capabilities in engines, advanced materials, seekers and sensors which will lead to lower import dependence as well as give us better margins and export competitiveness. With state and central policies aligning, clarity on offsets, IP regimes and long-horizon orders will help moor private capex in complex capital-intensive lines.
Outlook
Defence production is seen to have potential to multiply gradually through 2030s as systems like AMCA, all naval vessels, artillery and air defence enter serialisation with significantly higher indigenous content. And, the potential is to grow x times again by 2047 assuming reforms continue and international demand supports the Indian price-performance pitch. Timed to lock in structural enablers for the next growth wave in defence manufacturing, a robust state–centre interface, digital platforms and policy compendiums: the New Delhi conference has it all.