iNDICA NEWS BUREAU-
India is on way to cement its position as a formidable player in the global defence landscape. With the fourth largest defence budget in the world, India allocated US $72.6 billion for the fiscal year 2023-24.
This investment supports the world’s second-largest armed force, comprising 1.45 million active personnel, according to Invest India data.
In 2022-23, US $19.7 billion was earmarked for capital expenditure, underscoring India’s commitment to modernizing its military infrastructure.
The country has set an export target of US $5 billion by 2025, already achieving US $1.9 billion in exports for 2023, marking a ten times increase since 2016.
At present, India exports defence equipment to 85 countries and contributes 3.7 per cent to the total global military expenditure.
Over the next 5-7 years, the Indian government plans to invest US $130 billion in fleet modernization across all armed services.
The fifth Positive Indigenization list has been released, comprising highly complex systems, sensors, weapons, and ammunition. In total, 509 items across all five lists are earmarked for indigenization, promoting domestic manufacturing and reducing dependency on imports.
India has liberalized its Foreign Direct Investment (FDI) policy, allowing up to 74 per cent through the automatic route and up to 100 per cent through the government route for most aero-components. This policy aims to attract global investors and foster technology transfer.
India is developing two defence industrial corridors in Tamil Nadu and Uttar Pradesh. These corridors are dedicated to defence manufacturing and aim to attract investment and foster innovation.
The Make in India Defence portal provides comprehensive information on policies, procedures, and promotional measures related to defence production.
Prominent players in India’s defence manufacturing sector include Hindustan Aeronautics Ltd., Bharat Electronics Limited, BEML Ltd., Mishra Dhatu Nigam Ltd. (MIDHANI), Mazagon Dock Shipbuilders Ltd., Goa Shipyard Ltd., Hindustan Shipyard Ltd., Bharat Dynamics Ltd., Garden Reach Shipbuilders and Engineers Ltd., and the Defence Research and Development Organisation (DRDO).
