Rupal Kalebere
In a significant milestone for India’s defence industry, the fiscal year 2023-24 witnessed a remarkable surge in defence exports, reaching a record high of Rs 21,083 crore (approximately US$ 2.63 billion). This achievement marks a notable 32.5% increase over the preceding fiscal year, demonstrating the sector’s robust growth and global competitiveness. The figures reflect a compelling narrative of India’s ascent as a formidable player in the international defence market.
Over the past decade, the trajectory of India’s defence exports has been nothing short of phenomenal, growing by a staggering 31 times since FY 2013-14. Such exponential growth underscores the concerted efforts of both the private sector and Defence Public Sector Undertakings (DPSUs) in advancing India’s defence capabilities and expanding its footprint in global markets. Notably, the private sector has emerged as a significant contributor, accounting for 60% of the total exports, while DPSUs continue to play a pivotal role, contributing 40%.
A key driver behind this remarkable feat has been the issuance of export authorisations, which saw a notable increase from 1,414 in FY 2022-23 to 1,507 in FY 2023-24. This surge in authorisations reflects a growing confidence among defence exporters and underscores the government’s commitment to facilitating trade and fostering a conducive environment for industry growth.
A comparative analysis spanning two decades further highlights the transformative journey of India’s defence exports. From Rs 4,312 crore during 2004-05 to 2013-14, the exports surged to an impressive Rs 88,319 crore in the period from 2014-15 to 2023-24, marking a phenomenal growth of 21 times. Such substantial growth underscores the resilience and adaptability of India’s defence industry amidst evolving global dynamics.
Behind this success story lie strategic policy reforms and ‘Ease of Doing Business’ initiatives spearheaded by the government, aimed at streamlining processes and fostering innovation. The implementation of end-to-end digital solutions has further empowered Indian industries, facilitating seamless engagement with global partners and enhancing the export ecosystem.
Moreover, the surge in defence exports serves as a testament to the global acceptability of Indian defence products and technologies, underscored by their reliability, quality, and competitiveness. India’s growing prowess in defence manufacturing is not only bolstering its self-reliance but also positioning it as a preferred partner for nations seeking cutting-edge solutions to their security challenges. Several Indian products ranging for the BrahMoS cruise missiles, Advanced Light Helicopters and artillery pieces have all found interested buyers across the world. Warships – Offshore Patrol Vessels and Interceptor craft – are on mission with Asian Navies from Vietnam to Mauritius. The Tejas, Light Combat Aircraft narrowly lost to the Korea F-50 in a tender by the Malaysian Royal Air Force. It has been reported that there are as many as six buyer countries including Argentina, the Philippines and Nigeria, Botswana and Egypt who have evinced interest in the Tejas. Private sector companies have made a niche market for high quality Billet Proof Jackets with their exports to dozens of countries.
Apart from full systems and platforms the offset route has also paid some rich dividends with aerostructure parts feeding into the global supply chain – in some cases as single source – to airframe manufacturers such as Airbus and Boeing.
Looking ahead, sustaining this momentum will require continued collaboration between the government, industry stakeholders, and research institutions to nurture innovation, build technological capabilities, and seize emerging opportunities in the global defence market. With a steadfast commitment to excellence and a conducive policy environment, India is poised to chart new frontiers in defence exports, reaffirming its status as a global leader in the sector.
India’s Defence Export policy and all round facilitation by the Defence Attaches and missions abroad Indian companies both in the private and public sector can look forward to better business as long as they remain competitive on cost, uncompromising on quality and deliver on schedule.