India may set up a new council to bolster defence exports – CNBC TV18
The Narendra Modi administration aims to more than double defence exports to over ₹50,000 crore by 2029 compared to ₹21,083 crore at the end of March 2024.
Many big global defence manufacturers have expressed interest in shifting production lines to India, according to sources. A dedicated EPC may help fine-tune strategy and highlight the demands and concerns of both existing and potential defence exporters.
Defence is the biggest chunk of India’s expenditure budget.
India has 14 EPCs under the administrative control of the Department of Commerce. These Councils are registered as non-profit organisations under the Companies Act/ Societies Registration Act and perform advisory and executive functions.
From being a major arms importer until a decade earlier, India has become an exporter of defence equipments like bulletproof jackets and helmets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes, to name a few.
As part of the Make in India initiative, major defence platforms such as the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Combat Aircraft (LCA) Tejas, submarines, frigates, corvettes, and the recently commissioned INS Vikrant have been developed. Photo: Tejas fighter jet, Source: AP
The Ministry of Defence reported a domestic defence production worth an unprecedented ₹1.27 lakh crore in the financial year ended March 2024, a rise of 174% from ₹46,429 crore in March 2015.
The government has set a target of ₹1.75 lakh crore worth of defence equipment production in the current fiscal year, and ₹3 lakh crore by 2029.
Indian defence equipment went to over 100 nations in FY24. Top three destinations were the US, France, and Armenia.
Currently, nearly 65% of India’s own defence needs are met with local production, in sharp contrast to a few years ago when nearly two-thirds of all weapons and equipments came from other countries.
Domestic production comprises 16 Defence Public Sector Units (DPSUs), over 430 licensed companies, and approximately 16,000 Micro, Small, and Medium Enterprises (MSMEs). 21% of this production comes from the private sector.
Some of the popular names in this segment include state-owned companies like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Mazagon Dock Shipbuilders, Mishra Dhatu Nigam Limited, and BEML Limited.
| Top PSU defence stocks | 2024 returns |
| HAL | 64.17% |
| BEL | 70.4% |
| BEML | 56.89% |
| Cochin Shipyard | 140.67% |
| Garden Reach Shipyard | 99.7% |
| Mazagon Dock | 114.5% |
The share price changes are as of 1:30 pm on December 11, 2024.
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(Edited by : Sriram Iyer)
