India's Defence Exports Skyrocket Amid Global Shifts and Domestic Innovations

India's defence exports have grown from Rs 15 billion in 2017 to Rs 210 billion in 2024, driven by a 46% CAGR. A report from Antique Stock Broking highlights opportunities from global supply chain shifts and domestic advancements, aiming to boost India's share in the global defence industry.

India's defence exports have soared from Rs 15 billion in 2017 to Rs 210 billion in 2024, as highlighted in a report by Antique Stock Broking at the 'Defence Conference 3.0'. The report attributes this 46% CAGR to global shifts towards a China+1 strategy and the effects of the Russia-Ukraine war, offering India new avenues to bridge supply chain gaps in the defence sector.

The nation's long-term vision to become a global defence manufacturing hub is propelled by Defence Public Sector Undertakings (DPSUs), private enterprises, start-ups, and MSMEs. The report emphasizes the opportunities created by the global restructuring and conflicts, positioning India to significantly enhance its role in the global defence market.

A robust domestic ecosystem is essential to achieving this target, minimizing import content to expedite international approvals. Key initiatives by the Ministry of Defence include establishing aerospace parks and defence corridors, fast-tracking project approvals, and improving development and testing facilities to attract both Indian and global players.

The Maintenance, Repair, and Overhaul (MRO) segment in India holds immense potential for global aerospace companies, thanks to India's technical prowess and cost-effective solutions. The report underscores India's advantageous position in offering MRO services on a global scale.

With an ambition to boost domestic defence turnover to Rs 3 lac crore by 2029 and target Rs 500 billion in exports, this growth trajectory aims to reduce India's import dependence. The Atmanirbhar Bharat initiative has reserved 75% of the defence capital outlay for domestic firms, a significant increase from 49% in FY21.

Facing geopolitical challenges and modernization needs, India plans to invest Rs 8.3 lac crore in domestic procurement, creating substantial business opportunities for local companies. The Ministry of Defence reported a 16.8% growth in the defence manufacturing sector for FY 2023-24, marking a record high with a total production value of Rs 1,26,887 crore.

(With inputs from agencies.)