India's Defence Sector Surges on Back of Progressive Reforms and Foreign Collaborations

India's defence sector sees rapid growth and increasing foreign investments due to progressive reforms. Defence Minister Rajnath Singh highlights partnerships and joint ventures, celebrating milestones like the GE 414 aero-engines co-production. Record-high domestic and export figures underscore advancement in indigenous production.

India's progressive reforms in the defence sector have been instrumental in attracting foreign original equipment manufacturers (OEMs), Defence Minister Rajnath Singh announced during a dialogue with senior executives from US defence firms on Saturday. Singh emphasized that OEMs from the US and other nations are increasingly establishing manufacturing units, forming joint ventures, and considering India as an alternative export base.

During a round-table organized by the US-India Strategic Partnership Forum, Singh highlighted emerging co-development and co-production opportunities within India's defence sector. He noted that the planned co-production of GE 414 aero-engines in India would mark a significant milestone in India-US bilateral relations.

Singh stressed that 'Partnership' and 'Joint Efforts' are pivotal in differentiating India's defence partnerships from those with other nations. Senior executives from top US defence and technology firms like Boeing, GE, General Atomics, General Dynamics Land Systems, L3 Harris, Lockheed Martin, Raytheon Technologies, Rolls Royce, and ThayerMahan attended the event.

Indian companies including ideaForge, Tata Sons, and Tsecond, alongside senior members from The Cohen Group, participated, offering insights into their ongoing and future projects while providing valuable feedback.

The Indian government aims to achieve self-reliance or 'Aatmanirbharta' in the defence sector through a comprehensive approach. The Ministry of Defence reported the highest-ever growth in indigenous defence production for the 2023-24 fiscal year, attributed to the effective implementation of governmental policies and initiatives.

According to data from Defence Public Sector Undertakings (DPSUs), other PSUs, and private companies, the value of defence production reached Rs 1,26,887 crore, a 16.7% increase from the previous year's Rs 1,08,684 crore. Of the total production value in 2023-24, DPSUs and other PSUs contributed 79.2%, with the private sector contributing 20.8%. Both sectors have reported consistent growth in absolute terms.

Additionally, defence exports soared to Rs 21,083 crore in the 2023-24 fiscal year, a 32.5% rise from Rs 15,920 crore in the preceding year.

(With inputs from agencies.)