DEFENCE PRODUCTION

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Context

• As a result of the consistent efforts of Ministry of Defence, the value of defence production in Financial Year (FY) 2022-23 has crossed the figure of Rs one lakh crore for the first time ever.

Details

• The value currently stands Rs 1,06,800 crore.
• The current value of defence production in FY 2022-23 is a rise of more than 12 per cent over FY 2021-22, when the figure was Rs 95,000 crore.
• The Government is continuously working with defence industries and their associations to remove the challenges faced by them and promote defence production in the country.
• A number of policy reforms have been taken to achieve the objective of ease of doing business, including the integration of MSMEs and start-ups into the supply chain.
• There is almost a 200 per cent increase in the number of defence licenses issued to the industries in the last 7-8 years by the Government.

Summary

• The Indian Defence sector, the second largest armed force is at the cusp of revolution.
• The Government has identified the Defence and Aerospace sector as a focus area for the ‘Aatmanirbhar Bharat’ or Self-Reliant India initiative, with a formidable push on the establishment of indigenous manufacturing infrastructure. 
• India is positioned as the 3rd largest military spender in the world, with its defence budget accounting for 2.15% of the country’s total GDP.
• GOI aims to achieve a turnover of USD 25 Bn including export of USD 5 Bn in Aerospace and Defence goods and services by 2025.
• Government has established 2 Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu.
• Defence exports reach an all-time high of approx. INR 16,000 crore in FY 2022-23, over 10-times increase since 2016-17. 

MUST READ ARTICLES:

Defence Exports:

https://www.iasgyan.in/rstv/perspective-indias-defence-exports-17#:~:text=India's%20defence%20exports%20in%202017,as%20of%206%20March%202023.

https://www.iasgyan.in/daily-current-affairs/defence-exports

https://pib.gov.in/PressReleasePage.aspx?PRID=1925369