Scribd
Upload
30 views3 pages

Defense Industry

India has a significant domestic defense industry that is majority government-owned. The defense budget for 2023-2024 allocates 2% of GDP to the military sector. Several reforms have been implemented to boost domestic production and reduce imports, with the goal of making India self-reliant in defense. Major players in India's defense manufacturing sector include public sector units like HAL, BEL, and BEML as well as private companies like Tata, M&M, and L&T. Exports of defense equipment have increased substantially in recent years.

Uploaded by

tina21jangid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
30 views3 pages

Defense Industry

India has a significant domestic defense industry that is majority government-owned. The defense budget for 2023-2024 allocates 2% of GDP to the military sector. Several reforms have been implemented to boost domestic production and reduce imports, with the goal of making India self-reliant in defense. Major players in India's defense manufacturing sector include public sector units like HAL, BEL, and BEML as well as private companies like Tata, M&M, and L&T. Exports of defense equipment have increased substantially in recent years.

Uploaded by

tina21jangid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

DEFENSE SECTOR

India's defense industry, namely the development of weapons, has been


significant. With around 70 lakh active soldiers and volunteers, India's armed
forces are among the best in the world in terms of sheer numbers. Eighty
percent of India's domestic defense sector is owned by the government. The
Defence Research and Development Organisation (DRDO) is the top
organization in the public sector. It boasts 12 defense PSUs, four defense
shipyards, and 50 labs. Several private defense industries are included in the
defense industry of India, along with the Defence Public Industry Undertakings
(DPSUs), Ordnance Factory Board (OFB), and DRDO. 1 India receives 12% of global
arms exports (by value).2 Of the defense items India consumes, approximately
70–75 percent are produced locally; the remainder are imported. The finance
minister said on February 1st that the Ministry of Defence (MoD) will get an
allocation of INR 6,21,541 crore (about US$75 billion) in the Interim Budget of
2024–2025. The MoD's new budget is 4.7 percent more than the previous
outlays, making up 1.9 percent of GDP and 13 percent of CGE (Central
Government Expenditure). 3
In the last several years, the government has implemented several legislative
measures and reforms to support domestic design, development, and
production of defense equipment, thereby fostering national self-sufficiency in
defense manufacturing and technology. Hindustan Aeronautics Ltd. (HAL),
Bharat Electronics Ltd. (BEL), and Bharat Earth Movers Ltd. (BEML) are a few of
the significant military manufacturing firms in India. 4
India has joined the mainstream manufacturing sector with the "Aatmanirbhar
Bharat" concept. The government encourages foreign businesses to join the
public sector military units and is concentrating on enhancing the private
sector's involvement in both national and private growth. To further advance
"Build in India, Build for the World," the government invited corporate

1
https://www.researchgate.net/profile/Prasanta-Sahoo-10/publication/373096942_India's_Self-
Reliance_in_Defence_Three_Parameters_of_Assessment/links/64d87d5a66f0e0067d916f5c/Indias-Self-
Reliance-in-Defence-Three-Parameters-of-Assessment.pdf
2
https://doi.org/10.55163/KFLQ6518
3
https://economictimes.indiatimes.com/news/defence/drdo-chief-urges-for-indigenous-defence-
production/articleshow/71350864.cms
4
https://www.ibef.org/industry/defence-manufacturing
participation in 310 more defense-related areas. Between 2017 and 2021,
India's defense exports increased by over six times, from 1,520 crore to 8,435
crore (or Rs 12,815 crore) in the fiscal year 2021–2022. Furthermore, by the
fiscal year 2024–2025, the Indian government wants to have invested $22 billion
(175 trillion rupees). India has a robust supply chain with more than 12,000
micro, small, and medium enterprises (MSMEs) and 194 new defense
technology solutions.5 India must make use of the private sector's technological
and financial know-how, support PPPs (Public-Private Partnerships), and use
them as tactical instruments to increase domestic design, development, and
manufacturing capacity in the highly sought-after military sector.6 To resurrect
India's industrial growth and, more crucially, advance the country as a
worldwide manufacturing powerhouse, 25 industries, including defense
production, have been designated. 7 Furthermore, the private sector has shown
tremendous promise in the defense industry, with firms like Tata, M&M, L&T,
and Kalyani Forge engaged in the production and export of weapons. The Open
General Export License (OGEL) system for the export of parts and components,
technology transfer, major platforms, and equipment was established by the
government to promote the export of defense equipment. 8
For the fiscal year 2023–24, the Indian government has allocated 2% of its
estimated gross domestic product (GDP) to the military. Furthermore, 13% of
the whole government budget is allocated to it. Consequently, India ranks third
globally in terms of military spending. India, which was formerly known for
importing military equipment, is now an exporter of important platforms. These
Platforms include the Dornier-228, 155 mm Advanced Towed Artillery Guns
(ATAGs), Brahmos Missiles, Akash Missile System, Radars, Simulators, Mine
Protected Vehicles, Armored Vehicles, PINAKA Rockets & Launchers,
Ammunitions, Thermal Imagers, Body Armors, Systems, Line Replaceable Units,
and Parts & components of Avionics and Small Arms. 9

5
https://www.biogecko.co.nz/admin/uploads/03.%20Dr.Jayasree%20nambiar%20(IEEE).pdf
6
https://media.neliti.com/media/publications/327331-public-private-partnerships-ppps-and-the-
c93738c4.pdf
7
https://www.idsa.in/policybrief/MakeinIndiaforDefence_lbehera_050215
8
https://www.irejournals.com/formatedpaper/1705527.pdf
9
https://www.irejournals.com/formatedpaper/1705527.pdf

You might also like