Record Defence Exports Propel India’s Manufacturing Sector Forward - News

India’s defence manufacturing sector achieved a growth spur in FY 2023-24, with Rajnath Singh, Defence Minister, Government of India, announcing a 16.7 percent increase in production value, reaching INR 1,26,887 crore. This is a substantial increase from the INR 1,08,684 crore recorded the previous year. Additionally, defence public sector undertakings (PSUs) and other PSUs accounted for 79.2 percent of this total, while the private sector contributed 20 percent.

Singh outlined ambitious targets for FY 2024-25 that aim for indigenous defence manufacturing worth INR 1,75,000 crore. This included defence exports valued at INR 35,000 crore. He further highlighted recent policy reforms integrating MSMEs and startups into the defence supply chain to boost efficiency and competitiveness.

Moreover, defence exports surged to a record INR 21,083 crore in FY 2023-24, a 32.5 percent increase from INR 15,920 crore in the previous year. This marked a significant growth trend over the last decade.

Investor response was positive following the announcement, with shares of Hindustan Aeronautics Ltd (HAL) rising over 1.5 percent to INR 5,601 crore. This increase reflects growing investor confidence in the country’s expanding defence manufacturing capabilities and export potential.