Defence exports hit new record of ₹23622 crore in 2024-25

Background Context

• India’s defence exports have been consistently rising over the past few years, driven by policy reforms, indigenization efforts, and global demand for Indian defence equipment.
• The Defence Production and Export Promotion Policy (DPEPP) 2020 aims to achieve a defence export target of ₹35,000 crore by 2025 and ₹50,000 crore by 2029.
• Key initiatives include Make in India in Defence, liberalized FDI norms, Defence Industrial Corridors, and reforms in defence procurement.
• Major Indian defence exporters include Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), Bharat Dynamics Ltd (BDL), L&T, and Tata Advanced Systems.
• Indian defence exports include artillery systems, radars, coastal surveillance systems, UAVs, and personal protective gear to countries in South-East Asia, Africa, and Latin America.

Relevance : GS 2 (Governance, International Relations )

Key Highlights of the 2024-25 Defence Export Growth

1. Record-Breaking Export Growth
   1. Defence exports touched ₹23,622 crore in FY 2024-25.
   2. 12.04% growth from ₹21,083 crore in FY 2023–24.
   3. Marks India’s continued push toward self-reliance and global defence market penetration.

• Public vs. Private Sector Contribution
  • Defence PSUs (DPSUs): ₹8,389 crore in FY 2024-25 (↑ 42.85% from ₹5,874 crore in FY 2023-24).
  • Private Sector: ₹15,233 crore (marginal increase from ₹15,209 crore in FY 2023-24).
  • Significance: DPSUs are increasingly contributing to exports, reducing reliance on imports and boosting India’s strategic autonomy.
• Rise in Export Authorizations
  • 1,762 export authorizations issued in FY 2024-25.
  • 16.92% growth from 1,507 authorizations in FY 2023-24.
  • Reflects faster clearance processes and improved ease of doing business in defence exports.

Strategic Implications

 Enhancing India’s Global Defence Footprint

• Increased defence exports help India establish itself as a major arms supplier, particularly in the Global South.
• Strengthens defence diplomacy with friendly nations, reducing dependency on Western suppliers.

Boosting Self-Reliance and Atmanirbhar Bharat

• Aligns with India’s goal of reducing imports and increasing domestic production under Aatmanirbhar Bharat.
• Encourages Indian firms to develop indigenous high-tech defence equipment.

Economic and Employment Benefits

• Rising exports contribute to India’s GDP growth and forex reserves.
• Generates employment across MSMEs and large industries in defence manufacturing.

Technology Advancement and Innovation

• Growing exports drive R&D and the adoption of cutting-edge technologies.
• Encourages private players and start-ups to invest in AI-driven, cyber warfare, and advanced missile systems.

Challenges & Way Forward

Global Competition & Geopolitics

• Competing with established arms exporters like the US, Russia, and China.
• Need for strategic trade alliances and defence pacts to boost export deals.

Regulatory and Policy Bottlenecks

• Complex export licensing and end-user verification processes slow down deals.
• Need for further streamlining and automation of defence export clearances.

Need for Higher Private Sector Participation

• DPSU growth outpaces private sector in 2024-25, highlighting a need for better incentives for private firms.
• Expanding government-backed financing options for private defence exports.

Future Projections

• India aims for ₹50,000 crore in defence exports by 2029.
• Focus on emerging markets, niche defence products (drones, cyber warfare tech, naval systems).
• Strengthening ties with ASEAN, Middle East, and Africa for sustained export growth.

Conclusion

India’s record defence exports in 2024-25 highlight its growing global defence presence, increasing self-reliance, and policy-driven success. Sustained reforms, tech innovation, and private sector participation will be key to achieving long-term defence export goals