Context:

The Ministry of Defence has achieved the highest-ever growth in indigenous defence production in value terms during the Financial Year (FY) 2023-24.

More on the news

• The indigenous defence production rose to a record high value of Rs 1.27 lakh crore in 2023-24.
• As per the data received from all Defence Public Sector undertakings (DPSUs), other PSUs manufacturing defence items and private companies, the defence production reflects a growth of 16.7% over the defence production of the financial year 2022-23.
• Of the total value of production (VoP) in 2023-24, about 79.2% has been contributed by DPSUs/other PSUs and 20.8% by the private sector.
• In the last five years (since 2019-20), the value of defence production has been increasing steadily and has grown by over 60%.
• According to the Ministry, the growth in indigenous production was significantly driven by rising defense exports. In FY 2023-24, defense exports reached Rs 21,083 crore, marking a 32.5% increase from Rs 15,920 crore in the previous fiscal year.

Significance

• The annual defence production is in line with the objectives of ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives.
• This growth not only strengthens national security but also stimulates economic progress, technological advancements, and job creation.