New Delhi, Apr 5 (KNN) In a significant boost to India's defence production capabilities, private sector companies contributed Rs 16,411 crore, or 22 per cent, to the total output of Rs 74,739 crore in the fiscal year 2023-24.

This marks the highest share of private sector contribution since 2016-17, according to data from the Department of Defence Production.

While the private sector's contribution in absolute terms decreased from Rs 21,083 crore in the previous fiscal year, its share of the total defence production rose due to a lesser decline compared to the overall numbers.

The total defence production in India for FY24 stood at Rs 74,739 crore, down from Rs 1.09 trillion in the previous year.

The government has been actively promoting higher defence production within the country.

Defence Minister Rajnath Singh announced in November a reservation of Rs 1 trillion, or 75 per cent of the defence acquisition budget, for local companies.

The defence offset policy aims to boost the local industry by requiring foreign companies to spend a portion of their orders locally through investments in domestic firms or purchases from them.

India's defence exports reached a record high of Rs 21,083 crore in FY24, up from Rs 15,920 crore in FY23, according to the Ministry of Defence.

The total value of defence offset was USD 7.9 billion as of FY24, nearly tripling from USD 2.9 billion in 2019-20.

However, there are still claims worth roughly USD 310 million yet to be processed.

(KNN Bureau)