Defence exports hit new report of ₹23622 crore in 2024-25

Background Context

• India’s defence exports have been constantly rising over the previous few years, pushed by coverage reforms, indigenization efforts, and world demand for Indian defence gear.
• The Defence Manufacturing and Export Promotion Coverage (DPEPP) 2020 goals to realize a defence export goal of ₹35,000 crore by 2025 and ₹50,000 crore by 2029.
• Key initiatives embrace Make in India in Defence, liberalized FDI norms, Defence Industrial Corridors, and reforms in defence procurement.
• Main Indian defence exporters embrace Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), Bharat Dynamics Ltd (BDL), L&T, and Tata Superior Methods.
• Indian defence exports include artillery methods, radars, coastal surveillance methods, UAVs, and private protecting gear to international locations in South-East Asia, Africa, and Latin America.

Relevance : GS 2 (Governance, Worldwide Relations )

Key Highlights of the 2024-25 Defence Export Development

1. Document-Breaking Export Development
   1. Defence exports touched ₹23,622 crore in FY 2024-25.
   2. 12.04% development from ₹21,083 crore in FY 2023–24.
   3. Marks India’s continued push towards self-reliance and world defence market penetration.

• Public vs. Personal Sector Contribution
  • Defence PSUs (DPSUs): ₹8,389 crore in FY 2024-25 (↑ 42.85% from ₹5,874 crore in FY 2023-24).
  • Personal Sector: ₹15,233 crore (marginal enhance from ₹15,209 crore in FY 2023-24).
  • Significance: DPSUs are more and more contributing to exports, lowering reliance on imports and boosting India’s strategic autonomy.
• Rise in Export Authorizations
  • 1,762 export authorizations issued in FY 2024-25.
  • 16.92% development from 1,507 authorizations in FY 2023-24.
  • Displays quicker clearance processes and improved ease of doing enterprise in defence exports.

Strategic Implications

 Enhancing India’s International Defence Footprint

• Elevated defence exports assist India set up itself as a main arms provider, significantly within the International South.
• Strengthens defence diplomacy with pleasant nations, lowering dependency on Western suppliers.

Boosting Self-Reliance and Atmanirbhar Bharat

• Aligns with India’s objective of lowering imports and rising home manufacturing below Aatmanirbhar Bharat.
• Encourages Indian corporations to develop indigenous high-tech defence gear.

Financial and Employment Advantages

• Rising exports contribute to India’s GDP development and foreign exchange reserves.
• Generates employment throughout MSMEs and huge industries in defence manufacturing.

Know-how Development and Innovation

• Rising exports drive R&D and the adoption of cutting-edge applied sciences.
• Encourages non-public gamers and start-ups to spend money on AI-driven, cyber warfare, and superior missile methods.

Challenges & Means Ahead

International Competitors & Geopolitics

• Competing with established arms exporters just like the US, Russia, and China.
• Want for strategic commerce alliances and defence pacts to spice up export offers.

Regulatory and Coverage Bottlenecks

• Advanced export licensing and end-user verification processes decelerate offers.
• Want for additional streamlining and automation of defence export clearances.

Want for Greater Personal Sector Participation

• DPSU development outpaces non-public sector in 2024-25, highlighting a want for higher incentives for personal corporations.
• Increasing government-backed financing choices for personal defence exports.

Future Projections

• India goals for ₹50,000 crore in defence exports by 2029.
• Give attention to rising markets, area of interest defence merchandise (drones, cyber warfare tech, naval methods).
• Strengthening ties with ASEAN, Center East, and Africa for sustained export development.

Conclusion

India’s report defence exports in 2024-25 spotlight its rising world defence presence, rising self-reliance, and policy-driven success. Sustained reforms, tech innovation, and personal sector participation will likely be key to reaching long-term defence export objectives