India aims for Rs 1.5 lakh crore in defence production in FY 2024, targets Rs 20,000 crore in exports

In the upcoming fiscal year, India’s private sector is poised for massive gains as the government prepares to announce challenging figures for the defence production sector.

Defence Secretary Giridhare Aramane, in an interview with CNBC-TV18, disclosed a substantial increase in defence capital spending. He mentioned an expected 5 to 7.5 per cent rise in the upcoming defence budget, as reported by Moneycontrol.

Aramane emphasized that there would be no shortcomings in defence procurement, including research & development and acquisitions, with the complete backing of the Finance Ministry. The Finance Ministry is prepared to address all the needs of the Defense Ministry.

In FY 2023, Indian defence production surpassed Rs. 1 lakh crore, with exports exceeding 16,000 crores. Aramane stated that the target is to surpass Rs. 1.5 lakh crore or even reach Rs. 1.75 lakh crore for defence production in FY 2024. Regarding exports, he mentioned that they are on track to cross the 20,000 crore mark.

To promote innovation in areas such as drones, UAVs, electronic warfare, air defence improvement, and ground mobility, Aramane announced the development of a new scheme. This scheme aims to facilitate the private sector’s advancement in emerging technologies within the defence sector.

Concerning privatization in the defence sector, Aramane revealed ongoing talks about divestment plans for Bharat Earth Movers Limited, as well as the potential sale of shipbuilding PSUs to fund future capital needs.

He also underscored the importance of the Make-in-India program during global conflicts to meet India’s defence needs and general requirements, advocating for a policy of mutual co-dependence and self-reliance.

Finally, Aramane assured progress in the General Electric-Hindustan Aeronautics Limited deal and stated that the Indian government sees no hurdles in the delivery of the S400 air defence system from Russia.

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