{"id":51742,"date":"2025-08-20T20:34:22","date_gmt":"2025-08-20T15:04:22","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=51742"},"modified":"2025-08-22T14:36:05","modified_gmt":"2025-08-22T09:06:05","slug":"private-sector-share-increase-defence-production-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/20-08-2025\/private-sector-share-increase-defence-production-india","title":{"rendered":"Increase of Private Sector Share in India&#8217;s Defence Production\u00a0"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Defence<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>According to the Department of Defence Production, the <strong>private sector contributed \u20b933,979 crore (22.56%)<\/strong> to India\u2019s total defence production of \u20b91,50,590 crore in <strong>FY 2024-25.<\/strong>\n<ul class=\"wp-block-list\">\n<li>This marks the highest-ever private participation since 2016-17, when the share was 19%.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Defence Production in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sectoral Contribution:<\/strong> In FY 2024-25, defence public sector undertakings<strong> (DPSUs) <\/strong>accounted for <strong>57.50% <\/strong>of the total defence production, while <strong>Indian ordnance factories contributed 14.49%<\/strong>, and non-defence PSUs 5.4%.<\/li>\n\n\n\n<li><strong>Defence Budget Growth:<\/strong> Increased from \u20b92.53 lakh crore in 2013-14 to \u20b96.81 lakh crore in 2025-26.<\/li>\n\n\n\n<li><strong>In 2024-25<\/strong>, India achieved its highest-ever defence production of <strong>\u20b91.50 lakh crore, <\/strong>more than three times the \u20b946,429 crore recorded in 2014-15.<\/li>\n\n\n\n<li><strong>Surge in Indigenous Defence Production: <\/strong>65% of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70% import dependency.<\/li>\n\n\n\n<li>India targets<strong> \u20b93 lakh crore<\/strong> in defence production by <strong>2029<\/strong>, reinforcing its position as a global defence manufacturing hub.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXeiyJgCWsYtLfqIen6uDiTQWzexnmxHWL2Qtc_ks_nmvvpOqRf7b9mjtzQFc_APx2zzPWsAQ22owBrpSATxUhs9sMdGiAaj3bva9CuF-7VzWpylDsgxXVMAtCv_vHgqLck0vsde?key=7VUcpb5onC77kqU_Z69Ikg\" alt=\"defence production in india\"\/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Growth in Defence Exports<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India\u2019s defence exports<\/strong> have surged, from \u20b9686 crore in 2013-14 to <strong>\u20b923,622 crore in 2024-25, <\/strong>a 34-fold increase.<\/li>\n\n\n\n<li><strong>India\u2019s diverse export portfolio<\/strong> includes bulletproof jackets, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.<\/li>\n\n\n\n<li>India exports defence equipment to over <strong>100 countries<\/strong>, with the U.S., France, and Armenia, emerging as the top three destinations in 2023-24.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Intervention<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Government schemes such as <strong>iDEX (Innovations for Defence Excellence)<\/strong> and <strong>DTIS (Defence Testing Infrastructure Scheme)<\/strong> enable innovation within the Defence &amp; Aerospace ecosystem.<\/li>\n\n\n\n<li><strong>Acing Development of Innovative Technologies with iDEX (ADITI) Scheme <\/strong>is a sub-scheme within iDEX with an outlay of Rs 750 crore covering the period of 3 years from <strong>2023\u20132024 to 2025\u20132026.<\/strong>\n<ul class=\"wp-block-list\">\n<li>It aims to <strong>support critical and strategic technologies<\/strong> such as satellite communication, advanced cyber technology, artificial intelligence, quantum technology, nuclear technologies, and underwater surveillance.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Two Defence Industrial Corridors (DICs)<\/strong> have been set up in <strong>Uttar Pradesh and Tamil Nadu<\/strong> to boost defence manufacturing. These corridors provide incentives to companies investing in the sector.<\/li>\n\n\n\n<li><strong>Self-Reliant Initiatives through Joint Action (SRIJAN): <\/strong>Launched by the Department of Defence Production (DDP) in 2020 to promote indigenisation under Atmanirbhar Bharat.\n<ul class=\"wp-block-list\">\n<li>Serves as a common platform for Defence Public Sector Undertakings (DPSUs) and the Armed Forces (SHQs) to list imported items for domestic manufacturing.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/01-07-2022\/ease-of-doing-business-ranking\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/01-07-2022\/ease-of-doing-business-ranking\">Ease of Doing Business (EoDB)<\/a>:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>In 2019<\/strong>, the Defence Product List was streamlined to reduce the number of items requiring a manufacturing licence.<\/li>\n\n\n\n<li>The validity of defence licences under the <strong>Industries (Development and Regulation) Act, 1951,<\/strong> has been extended from three years to <strong>15 years,<\/strong> with a further extension option of up to 18 years.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Provide Level Playing Field: <\/strong>Ensure transparent procurement processes so that private firms compete fairly with DPSUs.<\/li>\n\n\n\n<li><strong>Strengthen Export Ecosystem:<\/strong> Diversify export destinations and incentivise private companies to enter newer global markets.<\/li>\n\n\n\n<li><strong>Encourage Start-ups: <\/strong>Expand support under iDEX and ADITI to nurture defence start-ups in AI, quantum, space, and cyber domains.<\/li>\n\n\n\n<li><strong>Promote Joint Ventures:<\/strong> Facilitate partnerships with foreign defence majors for co-development and technology transfer.<\/li>\n\n\n\n<li><strong>Skill Development:<\/strong> Launch specialised training programmes to create a skilled workforce for emerging defence technologies.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"http:\/\/indu.com\/news\/national\/private-sector-share-in-defence-production-hits-record-2256-in-fy-2024-25\/article69952036.ece#:~:text=According%20to%20da\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">According to the Department of Defence Production, the private sector contributed \u20b933,979 crore (22.56%) to India\u2019s total defence production of \u20b91,50,590 crore in FY 2024-25.<\/li>\n<p><\/p>\n<h3><strong>Defence Production in India<\/strong><\/h3>\n<li class=\"ms-5\">Sectoral Contribution: In FY 2024-25, defence public sector undertakings (DPSUs) accounted for 57.50% of the total defence production, while Indian ordnance factories contributed 14.49%, and non-defence PSUs 5.4%.<\/li>\n<li class=\"ms-5\">Defence Budget Growth: Increased from \u20b92.53 lakh crore in 2013-14 to \u20b96.81 lakh crore in 2025-26.<\/li>\n<li class=\"ms-5\">In 2024-25, India achieved its highest-ever defence production of \u20b91.50 lakh crore, more than three times the \u20b946,429 crore recorded in 2014-15.<\/li>\n<li class=\"ms-5\">Surge in Indigenous Defence Production: 65% of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70% import dependency.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/20-08-2025\/private-sector-share-increase-defence-production-india\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-51742","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/51742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=51742"}],"version-history":[{"count":6,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/51742\/revisions"}],"predecessor-version":[{"id":51894,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/51742\/revisions\/51894"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=51742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=51742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=51742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}