In a span of five years, India’s defence production has risen steadily in value, and has grown by over 60 per cent since fiscal 2019-20.
India is aiming to become a leading exporter of military equipment and has been focusing heavily on producing its own defence products. According to the Ministry of Defence, the country has achieved its highest-ever annual production in this sector. And, on Friday (July 5), Defense Minister Rajnath Singh announced that India’s domestic defence production had reached a record Rs 1,27 lakh crore (about $15.1 billion) in 2023-’24, registering a 16.8% growth over that in the previous year. Defence production value for the fiscal year, 2022-’23, had amounted to Rs 108,684 crore.
In a span of five years, India’s defence production has risen steadily in value, and has grown by over 60 per cent since fiscal 2019-’20.
Under the leadership of Prime Minister Narendra Modi, the 'Make in India' programme is achieving new milestones every year. In a post on X (formerly Twitter), it was announced that India had seen the highest-ever growth in defence production value in 2023-’24. The government is dedicated to creating a more favourable environment for developing India into a leading global hub for defence manufacturing.
According to a statement from the Ministry of Defence, public sector undertakings (PSUs) were responsible for 79.2% of India’s defence manufacturing in 2023-24, while the private sector contributed 20.8%. The ministry also noted that strong domestic defence production had boosted India’s defence exports. Earlier this year, exports surpassed Rs 21,000 crore (about $3.1 billion), marking a 32.5% increase compared to those in the previous year.
Growth of Defence PSUs
The increase in defence manufacturing has brought significant profits for investors in major defence PSUs over the past year.
For instance, shares of Hindustan Aeronautics Limited (HAL), the largest defence PSU, have reportedly jumped by over 197 per cent over the past year
Cochin Shipyard Limited’s stock rose by more than 913 per cent in the same time frame, registering an even more impressive growth. This outstanding performance has made Cochin Shipyard a top choice for investors in defence stocks, according to the Economic Times
At the same time, Bharat Electronics Limited (BEL), the second-largest company by market value, has delivered significant returns to its shareholders, with its stock growing by over 167 per cent in a year
(The author of this article is a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com)
Disclaimer: The views expressed in this article are of the author only.
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