India's defence manufacturing sector is rapidly emerging as a cornerstone of the country's strategic and economic ambitions. The government has prioritized this sector, reflecting its significance in national security and economic growth. The Ministry of Defense's budget for 2023-24 is the highest among all ministries, underscoring the emphasis on enhancing domestic defense capabilities. Significant strides have been made in defence exports, which reached a record high of INR 21,083 Cr in FY 2023-24, compared to INR 686 Cr in FY 2013-14.
This impressive growth demonstrates India's expanding role as a global defence exporter. Additionally, the establishment of two Defense Industrial Corridors in Uttar Pradesh and Tamil Nadu aims to boost indigenous production, attract investment, and foster innovation in defense technologies. The government's 'Atmanirbhar Bharat' (Self-Reliant India) initiative further reinforces this focus, encouraging domestic companies to develop cutting-edge defence products and reduce dependency on imports. Policies like the Defense Acquisition Procedure 2020 and the increase in FDI limit to 74% under the automatic route are designed to enhance private sector participation and drive technological advancements. With these measures, India is positioning itself as a global hub for defence manufacturing, contributing to national security, creating job opportunities, and fostering technological innovation.
(Source: https://www.investindia.gov.in/sector/defence-manufacturing)