India’s Defence Manufacturing sector, valued at ₹1 trillion in 2023-24, is a critical component of national security and self-reliance. It contributes to strengthening domestic capabilities and reducing dependence on imports.
Why Invest in the Defence Manufacturing Sector
- Government Push: Focus on indigenization through “Aatmanirbhar Bharat” initiatives.
- Global Opportunities: India aims to become a major exporter of defence equipment.
- R&D Investments: Increased focus on innovation and advanced technologies.
Incentives & Schemes
- Defence Production Policy 2020: Aims to achieve a turnover of ₹1.75 trillion by 2025.
- FDI Liberalization: FDI limit raised to 74% under the automatic route.
- PLI Scheme for Defence: Boosts indigenous manufacturing with ₹25,000 crore allocated.
Highlights
- Exports Growth: Defence exports increased to ₹16,000 crore in 2023.
- Private Sector Participation: : More than 300 private companies engaged in defence production.
- Domestic Procurement: 68% of defence capital procurement budget reserved for domestic firms.
Defence Manufacturing Sector Data
| Category |
Details |
| Market Size (2023-24) |
₹1 trillion |
| Turnover Target (2025) |
₹1.75 trillion |
| Defence Exports (2023) |
₹16,000 crore |
| FDI in Defence |
74% under automatic route |
| Private Sector Participation |
300+ companies engaged |
| Employment |
Over 2 million people |
| Defence Budget Allocation (2023-24) |
₹5.94 trillion |
| Domestic Procurement Share |
68% of capital budget |
| R&D Investments |
₹2,000 crore allocated |
| Target for Indigenous Systems |
50% self-reliance by 2025 |
