India records growth in defence production

New Delhi: India’s indigenous defence production achieved the highest-ever growth in value terms during Financial Year (FY) 2023-24 on back of Modi government's ‘Aatmanirbharta’ campaign.

The value of defence production in the country has gone up to a record-high figure of Rs 1,26,887 crore, reflecting a year on year growth of 16.7 per cent. The value of defence production in FY 2022-23 was Rs 1,08,684 crore.

Prime Minister Narendra Modi said that government is committed to establish India as a leading global defence manufacturing hub.

“Very encouraging development. Compliments to all those who have contributed to this feat. We are fully committed to nurturing a supportive environment to further enhance our capabilities and establish India as a leading global defence manufacturing hub. This will enhance our security apparatus and make us Aatmanirbhar," said the Prime Minister.

Indian defence PSU stocks has given one of the best returns in the stock market in last couple of years as government focused on 'Make-in-India' in the defence sector. In one year the shares of Hindustan Aeronautics Ltd has given a return of 196 per cent (1,495 per cent in 5 years) , Bharat Electronics Ltd of 165 per cent (796 per cent in 5 years) and Mazagon Dock Shipbuilders Ltd of 333 per cent (3,263 per cent in 5 years).

Of the total value of production (VoP) in 2023-24, about 79.2 per cent has been contributed by DPSUs/other PSUs and 20.8 per cent by the private sector. The data shows that in terms of absolute value, both DPSUs/PSUs and private sector have recorded a steady growth in defence production. Defence minister Rajnath Singh congratulated the industry, including DPSUs, other PSUs manufacturing defence items and the private industry for taking the defence production at an all-time high.

"The feat has been achieved due to the policy reforms, initiatives and ease of doing business brought in by the government in the last 10 years with focus on attaining self-reliance," said defence ministry. The indigenisation efforts have been pursued aggressively on a sustained basis, that resulted in the highest ever VoP, it added. Moreover, the spiralling defence exports have contributed tremendously to the overall growth in the indigenous defence production. The defence exports touched a record-high of '21,083 crore in FY 2023-24, reflecting a growth of 32.5 per cent over the last fiscal when the figure was Rs 15,920 crore.

BJP MP Sudhanshu Trivedi said: "Earlier, we saw how he lied on the Agniveer issue. Now, on this heart-wrenching Hathras incident, the politics that he is trying to do is sad. Such incidents should be seen with the utmost sensitivity. More than 50 people have died in Tamil Nadu, ruled by the INDIA bloc. Most of them were from the SC community. Leave aside going there, Mr Gandhi has not even spoken about it... One shouldn't see any incident with vulture eyes for political benefits."