When Prime Minister Narendra Modi took a sortie in India's indigenous Tejas light combat aircraft (LCA) in November '23, he was not just showcasing the military might of the country but was also advertising a fine aircraft, which can take India's defence exports to new heights.
In April this year, Defence Minister Rajnath Singh announced that India's defence exports reached a record ₹21,083 crore in fiscal year 2023-24, a remarkable growth of 32.5% from the preceding fiscal year's ₹ 15,920 crore, and a quantum leap over 2014 when the defence exports were just ₹ 900 crore.
This fresh record takes the defence exports closer to the target of $5 billion set by PM Narendra Modi by FY25. The government aims to significantly ramp up defence production to ₹ 3 lakh crore by 2028-29, with exports targeted at ₹ 50,000 crore.
Over the past decade, defence exports have skyrocketed, expanding by 21 times from ₹ 4,312 crore (2004-05 to 2013-14) to ₹ 88,319 crore (2014-15 to 2023-24). This was propelled by the government's robust push for indigenization, aligning with India's aspirations for a larger strategic role and its pursuit of becoming the world's third-largest economy.
India's stride towards defence self-reliance is reflected in the establishment of a robust defence-industrial complex, involving 100 firms including major corporates like L&T, Godrej, and Adani, alongside PSUs, start-ups, and research bodies.
India's expanding defence exports span a wide array of products, including BrahMos missiles, Dornier-228 aircraft, ALH helicopters, SU avionics, artillery guns, radars, torpedoes, drones and more. The integration of hundreds of Indian Micro, Small, and Medium Enterprises (MSMEs) into global defence Original Equipment Manufacturer (OEM) supply chains, coupled with this surge in exports, positions India favourably for continued growth.
Esta historia es de la edición April, 2024 de Beyond Market.
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