India targets defence exports of Rs 35K crore by FY25

Exports of defence materials, including equipment, is likely to more than double to Rs 35,000 crore by 2024-25 from Rs 15,920 crore recorded in the financial year ended March 2023, a senior official in the Ministry of Defence has said.

“Our target is to increase exports to Rs 35,000 crore in the next two years,” T Natarajan, Additional Secretary, Department of Defence Production, said on Tuesday at an event organised by the Confederation of Indian Industry (CII).

Natarajan said defence exports have surged by around 10 times in the past seven years due to enabling government policy.

Total value of defence exports stood at Rs 1,521 crore in the financial year 2016-17. It surged to Rs 4,682 crore in 2017-18 and surged further to Rs 10,745 crore in 2018-19. However, there was a downward trend in defence exports in the next two years.

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Exports regained momentum again in 2021-22 rising to Rs 12,814 crore from Rs 8,434 crore recorded in 2020-21, the year which was severely impacted by Covid-19 pandemic. India’s defence exports hit a record high of Rs 15,920 crore in the financial year 2022-23.

Natarajan said the private sector, especially the micro, small and medium enterprises (MSMEs) are playing an increasingly important role in defence manufacturing and exports in the country.

“In the past, we have been highly dependent on imports of various defence equipment for various reasons. Maybe, our technological development was still not enough to take care of our requirements,” said Natarajan, adding India has now become an important player in defence exports.

Defence exports from India include aircraft like the Dornier-228, artillery guns, Brahmos Missiles, PINAKA rockets & launchers, radars, simulators and armoured vehicles. There are also growing demands for India's indigenous products, such as the LCA-Tejas, Light Combat Helicopters, Aircraft Carriers, and MRO activities, in the global markets.

According to data released by the Ministry of Defence last month, India exported defence equipment to 85 countries during the financial year 2022-23.