India's Defence Manufacturing Sector Achieves Record 16.8% Growth in FY 2023-24

New Delhi, Jul 5 (KNN) In a significant development for India's defence industry, Defence Minister Rajnath Singh announced on Friday that the country's defence manufacturing sector has experienced an unprecedented growth of 16.8 per cent in the fiscal year 2023-24.

This marks the highest-ever increase in India's defence production value, underscoring the nation's growing capabilities in this critical sector.

The total value of defence production reached an impressive Rs 1,26,887 crore (approximately USD 15.8 billion) this year, a substantial increase from the previous fiscal year. Minister Singh attributed this remarkable achievement to the success of the "Make in India" initiative, spearheaded by Prime Minister Narendra Modi's administration.

"The Make in India programme is crossing new milestones, year after year, under the leadership of PM Shri @narendramodi," Singh stated in a post on social media platform X. He further elaborated that this growth represents the highest ever recorded in the country's defence production value.

The minister extended his congratulations to both Public Sector Undertakings (PSUs) and private sector entities for their contributions to this milestone. He reaffirmed the government's commitment to establishing India as a leading global defence manufacturing hub, emphasizing the creation of a more conducive environment for industry growth.

This achievement aligns with the central government's ambitious target of reaching indigenous defence manufacturing worth Rs 1,75,000 crore, including defence exports of Rs 35,000 crore, by the fiscal year 2024-25. The recent figures suggest significant progress towards this goal.

Notably, India's defence exports have also seen a remarkable surge, reaching a record Rs 21,083 crore (approximately USD 2.63 billion) in FY 2023-24.

This represents a 32.5 per cent growth from the previous fiscal year and an astounding 31-fold increase over the past decade compared to 2013-14 figures.

The government's focus on ease of doing business and the integration of micro, small, and medium enterprises (MSMEs) and startups into the defence supply chain has played a crucial role in this growth.

Additionally, several global companies have either shared or expressed intent to share critical defence and aerospace knowledge with India, further bolstering the country's capabilities.

The impact of this growth is also reflected in the stock market, with shares of Hindustan Aeronautics Limited surging by more than 1.5 per cent following the announcement.

This trend of strong returns on equities has been observed across Indian defence PSUs in recent years, driven by new orders and increased production.

(KNN Bureau)