The Ministry of Defence has achieved a significant milestone in the financial year 2022-23, with the value of defence production crossing Rs one lakh crore for the first time ever. Currently, the value stands at Rs 1,06,800 crore, and it is expected to increase further once data from the remaining private defence industries is received. This represents a growth of over 12% compared to the previous financial year, when the figure was Rs 95,000 crore.
The government has been actively collaborating with defence industries and their associations to address the challenges they face and promote defence production in the country. Several policy reforms have been implemented to improve the ease of doing business, including integrating MSMEs (Micro, Small, and Medium Enterprises) and start-ups into the defence supply chain.
These policies have encouraged industries, including MSMEs and start-ups, to actively participate in defence design, development, and manufacturing. As a result, there has been a significant increase of almost 200% in the number of defence licenses issued to industries by the government in the last 7-8 years. These measures have not only boosted the defence manufacturing ecosystem in the country but also created numerous employment opportunities.