Syllabus: GS3/ Defence
In News
- India has achieved a significant milestone in its defence sector, with defence exports touching a record ₹23,622 crore in FY 2024-25 — marking a 12.04% growth over the previous year’s figure of ₹21,083 crore.
What’s Driving the Growth?
- Simplified industrial licensing procedures.
- De-licensing of parts/components.
- Extension of license validity.
- Easier Standard Operating Procedures (SOPs) for export authorisation.
- Enhanced international trust in Made-in-India military hardware.
Key Policy Initiatives
| Initiative | Description |
| Defence Production and Export Promotion Policy (DPEPP) – 2020 | Aims to achieve defence exports worth ₹50,000 crore by 2029. Focus on building a robust manufacturing ecosystem including private sector and MSMEs. |
| Simplified Export Authorization Process | The online portal under DDP facilitates fast export clearance. 1,762 authorizations issued in FY 2024-25, a 16.92% rise over last year. |
| Strategic Partnership (SP) Model | Enables Indian private firms to partner with foreign OEMs to co-develop and manufacture high-tech defence platforms. Boosts tech transfer. |
| Industrial Licensing Reforms | Removal of licensing for parts/components and extension of license validity reduces compliance burden for startups and MSMEs. |
| Defence Attaches Empowered for Export Promotion | Financial powers given to defence attachés abroad to promote exports, engage buyers, and participate in expos. |
| Export Promotion Cell in DDP | Dedicated cell in DDP coordinates with industry and governments to streamline export procedures and resolve issues. |
| Participation in International Defence Exhibitions | India regularly organises defence expos like Aero India, DefExpo, IDEX, enhancing brand visibility. |
| Encouraging MSMEs and Startups | iDEX platform supports over 250 startups with funding and incubation for export-ready innovation in AI, drones, etc. |
| Make in India & Atmanirbhar Bharat Abhiyan | Mission to promote indigenous manufacturing. Offers production-linked incentives and promotes import substitution. |
Significance of India’s Rising Defence Exports
- Strengthening Indigenous Defence Production: Defence production rose by 174% from 2014-15 to 2023-24, signaling India’s successful shift from import-dependence to Atmanirbhar Bharat (self-reliant India).
- This will promote domestic innovation, manufacturing, and reduced reliance on foreign military technology.
- Progress Toward Strategic Export Targets: India is on course to achieve its ₹50,000 crore defence export target by 2029.
- Catering to Global Demand: Exports to nearly 80 countries reflect growing international trust in Indian-made defence systems.
- Encouraging Private Sector Participation: In FY 2024-25, private players contributed ₹15,233 crore in exports, showcasing a thriving defence startup and MSME ecosystem.
- Enhances employment, investments, and R&D in the defence sector.
- Boosting Diplomatic and Strategic Leverage: Enhances India’s soft power and influence in regional and global security architecture.
Key Challenges in Defence Exports
- Technological Dependence: Reliance on foreign tech limits indigenous development and export competitiveness.
- DPSU Underperformance: Slower innovation, bureaucracy, and weak marketing hinder export potential.
- Policy Implementation Delays: Lag between policy and execution slows down exports.
- Limited Global Reach: Struggling to penetrate established markets against strong competition.
- Low Volume, High Diversity: Lack of high-demand, scalable flagship products.
- Quality & Support Gaps: Need improvement in product quality, certifications, and after-sales service.
- Weak Industrial Ecosystem: Underdeveloped supply chain, skilled workforce, and infrastructure.
Source: TH
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