India’s Ministry of Defence announced that the value of defense production in FY 2022-23 has exceeded Rs one lakh crore, marking a significant milestone. The current value stands at Rs 1,06,800 crore and is expected to increase further as data from remaining private defense industries is received.
This represents a growth of over 12% compared to FY 2021-22 when the figure was Rs 95,000 crore. The government has been actively working with defense industries and their associations to address challenges and promote defense production in the country.
To facilitate ease of doing business, several policy reforms have been implemented in India, including the integration of MSMEs and start-ups into the defense supply chain. These efforts have encouraged participation from industries, resulting in a surge in defense design, development, and manufacturing.
The government has witnessed a nearly 200% increase in the issuance of defense licenses in India to industries over the past 7-8 years. These initiatives have not only strengthened the defense industrial manufacturing ecosystem but have also created significant employment opportunities across the country.
Several policy reforms have been implemented to make it easier to do business, including involving small and medium-sized enterprises (MSMEs) and start-ups in the supply chain.