India's defence production crosses Rs one lakh crore mark in FY 2022-23

Image used for representational purpose. Pic/iStock

India's defence production has surpassed the Rs one lakh crore mark for the first time in the financial year 2022-23, according to a statement by the Ministry of Defence on Friday, PTI reported. The total value of defence production in the country in 2021-22 was over Rs 95,000 crore.

In recent years, the government has implemented various measures to promote the domestic defence industry, and these efforts have yielded positive results. The ministry highlighted that the value of defence production in FY 2022-23 has reached Rs 1,06,800 crore and is expected to increase further once data is received from the remaining private defence industries.

This achievement represents a growth of more than 12 percent compared to the previous financial year when the value of defence production was Rs 95,000 crore, the ministry added.

The government has been actively collaborating with defence industries and their associations to address challenges and facilitate defence production in the country. Policy reforms have been implemented to enhance the ease of doing business, including integrating Micro, Small, and Medium Enterprises (MSMEs) and start-ups into the defence supply chain.

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The ministry emphasized that the defence industry, including MSMEs and start-ups, has shown significant involvement in the design, development, and manufacturing of military hardware. The number of defence licenses issued by the government to industries has witnessed an almost 200 percent increase over the past seven to eight years.

These initiatives have not only stimulated the defence manufacturing ecosystem in the country but have also generated substantial employment opportunities, the ministry stated.

While India remains one of the largest importers of arms globally, the government aims to reduce dependence on imported military platforms and bolster domestic defence manufacturing. The Defence Ministry has set a target of achieving a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing by 2024-25, including an export goal of USD 5 billion (Rs 35,000 crore) worth of military hardware.

(With inputs from PTI)