India’s defence sector has experienced significant growth, highlighted by a record-breaking Rs 1.27 lakh crore in domestic defence production for the financial year 2023-24, as announced by Prime Minister Modi on July 5, 2024. This achievement marks a 16.7% increase from the previous year and za 60% rise compared to 2019-20, alongside a notable surge in defence exports.

India’s defence sector has witnessed a meteoric rise, culminating in a historic milestone: a record-breaking Rs 1.27 lakh crore in domestic defence production during the financial year 2023-24, as announced by our esteemed Prime Minister on July 5, 2024. This represents a monumental 16.7% surge over the previous year and a staggering 60% growth compared to 2019-20. Simultaneously, defence exports have soared to an unprecedented Rs 21,083 crore, marking a 32.5% increase over the previous fiscal.

Over the past decade, I’ve had the privilege of witnessing the defence sector’s transformation up close. The Defence Production and Export Promotion Policy (DPEPP) has been a beacon, guiding our efforts to enhance domestic manufacturing and reduce our reliance on imports. The targets set forth in this policy, including achieving a turnover of `1.75 lakh crore by 2025 with exports contributing ` 35,000 crore, seemed ambitious at the outset. Yet, here we are, on the cusp of realizing these goals.

These figures are not mere statistics; they symbolize the triumph of Prime Minister Modi’s ‘Aatmanirbhar Bharat’ vision, meticulously executed by the Ministry of Defence under the leadership of our Defence Minister. The Defence Production and Export Promotion Policy (DPEPP) stands as a testament to the Ministry’s strategic foresight and unwavering commitment to nurturing a robust domestic defence industry. Under the Ministry’s stewardship, a conducive ecosystem has been cultivated, fostering innovation, research, and development, and incentivizing private sector participation.

The Prime Minister’s unwavering belief in the capabilities of Indian defence industry has been a constant source of inspiration. His consistent push for self-reliance has galvanized the nation and instilled a sense of pride and purpose among industry stakeholders. The government’s proactive role in facilitating technology transfers, promoting joint ventures, and simplifying procurement procedures has been instrumental in enhancing the industry’s competitiveness.

The Defence Ministry’s unwavering support for the domestic industry, coupled with the Prime Minister’s visionary leadership, has been instrumental in achieving this unprecedented growth. The emphasis on indigenization, coupled with a series of policy reforms, has created a level playing field for both public and private sector players. The government’s proactive approach in identifying critical technologies, fostering partnerships, and promoting skill development has empowered the industry to scale new heights. Initiatives of the GoI and Ministry of Defence like iDEX, TDF, empowering the Defence Attaches of our mission abroad, on the domestic front and global partnership with countries like USA through DTTI and iCET (duly supported by the NSAs of India and the USA), UK, India Russia Intergovernmental Cooperation (IRIGC), Military and Military Technical Cooperation (M&MTC) and Inter Governmental Agreement (IGA) with Russia, to name a few, have been instrumental in getting cutting edge technologies to the Indian Defence Industry.

On its part, SIDM’s initiatives with GIFAS of France, AIDN of Australia, Rostec of Russia, Global outreach with Defence Industries of 21 developed and developing friendly foreign countries during the COVID period, helped catalyse the process further and take business outside our borders. The sterling performance of the Indian Industry, especially those in the private sector found new wings taking the Defence Exports close to the target pf 35,000 Cr by 2025. SIDM is not only sanguine about achieving this milestone but will actively support the industry to reach there.

On behalf of SIDM and as its current President, I am immensely proud of our role in this transformative journey. SIDM has been a steadfast partner to the government, tirelessly advocating for industry interests, simplifying regulatory hurdles, and empowering MSMEs – the backbone of our supply chains. We have bridged the gap between policymakers and industry practitioners, ensuring that the voice of the industry resonates in the corridors of power.

The synergy between the public and private sectors has been instrumental in this success. Defence Public Sector Undertakings (DPSUs) have leveraged their legacy, expertise, and infrastructure, while the private sector has infused innovation, agility, and a competitive spirit. This harmonious collaboration has propelled India to the forefront of global defence manufacturing.

However, this is just the beginning. The dynamic global defence landscape demands continuous innovation, technological advancements, and robust supply chains. SIDM remains committed to supporting the government and the industry in this pursuit. We will continue to advocate for policies that foster growth, innovation, and global competitiveness. Our focus will remain on strengthening MSMEs, facilitating their integration into global value chains, and forging strategic partnerships with foreign defence industries.

The foundations of a self-reliant Indian defence industry are now firmly established. With the unwavering support of the government, the industry, and all stakeholders, we are poised to emerge as a global leader in defence manufacturing and exports. The future is bright, and the possibilities are endless.

We extend our heartfelt gratitude to Prime Minister Modi for his visionary leadership, the Ministry of Defence for its unwavering support, and the entire defence industry for their relentless dedication to lead the Indian Defence Industry to truly become a world leader where we stand among the top 25 countries in defence exports. Together, we have embarked on a historic journey, and the best is yet to come.

Rajinder Bhatia, President SIDM