SOURCE: AFI
In the annals of India’s defence sector, 2024 has been etched as a year of unprecedented success, marked by a significant surge in defence exports. This year has not only seen a quantum leap in the value of exports but also an expansion in the geographical spread and diversity of products, cementing India’s position on the global stage as an emerging defence powerhouse.
The fiscal year 2023-24 witnessed Indian defence exports touching an all-time high of approximately Rs 21,083 crore (around US$ 2.63 billion), marking a 32.5% increase from the previous year. This growth trajectory reflects a 31-fold increase over the last decade, highlighting the effectiveness of India’s policy reforms and the ‘Make in India’ initiative under Prime Minister Narendra Modi’s leadership.
India’s defence products have found new markets, with exports reaching over 85 countries. This year, there was a notable increase in exports to regions like Africa, Southeast Asia, and the Middle East. Key recipients included countries like the Philippines, which received its first BrahMos missile batteries, signifying India’s capability in high-end missile technology.
Diversity in Exported Products
The export portfolio saw considerable diversification in 2024. Beyond traditional exports like small arms and ammunition, India showcased its prowess in exporting advanced systems:
- Aircraft: The Dornier-228, an indigenously manufactured aircraft, became a significant export item, alongside interest in the Light Combat Aircraft Tejas.
- Missile Systems: The BrahMos missile system, a joint venture with Russia, gained traction, with exports to new countries and interest from others for collaborative projects.
- Naval Platforms: Indian ships, accounting for 61% of total exports in categories, saw increased demand from countries looking to bolster their naval capabilities.
A crucial aspect of this year’s success has been the substantial contribution from the private sector, which accounted for approximately 60% of the exports. This involvement marks a shift towards a more inclusive defence manufacturing ecosystem, where private companies, alongside Defence Public Sector Undertakings (DPSUs), are pivotal in driving India’s defence exports.
The government’s strategic push towards simplifying export procedures, providing end-to-end digital solutions, and fostering an environment conducive to defence manufacturing has been instrumental. Policies aimed at easing the ‘Ease of Doing Business’ have directly contributed to the sector’s growth, providing Indian companies with a competitive edge in the international market.
The year 2024 also highlighted India’s strategic shift from being primarily an arms importer to a significant exporter. Despite still being one of the world’s largest arms importers, the growth in exports signifies a move towards self-reliance and the global acceptability of Indian defence products.
Looking forward, the Indian defence industry is poised to meet ambitious targets, including an export goal of Rs 50,000 crore in the next five years. The focus is on enhancing indigenous production, research, and development to expand the product range further, including advanced drones, cyber security solutions, and electronic warfare systems