India Eyes Rs 1.5 Lakh Crore Defence Production In FY 2024, Exports Target Set At Rs 20,000 Crore

India's private sector is poised for substantial gains as the government outlines ambitious targets for the defence production sector in the upcoming fiscal year.

As reported by Moneycontrol, in an exclusive interview with CNBC-TV18, Defence Secretary Giridhar Aramane provided insights into the key highlights of the government's vision.

In the interview, Aramane discussed the potential boost to defence capital spending, with expectations of a 5-7.5 per cent increase in the upcoming budget.

He emphasised that there would be no shortfall in government spending on acquisitions or research and development, with the Finance Ministry ready to support all the needs of the Defence Ministry.

It's important to note that India's defence production exceeded Rs 1 lakh crore in financial year (FY)-23, with exports crossing Rs 16,000 crore.

Aramane said that in FY24, he expects defence production to cross Rs 1.5 lakh crore and may even reach the target of Rs 1.75 lakh crore. Exports are on track to cross the Rs 20,000 crore mark, he said.

Aramane also revealed plans for a new scheme aimed at encouraging the private sector's development of emerging technologies in the defence sector.

He highlighted the importance of innovation in areas such as drones, UAVs, electronic warfare, air defence improvement, and ground mobility.

Regarding privatisation, Aramane mentioned ongoing discussions about divestment plans for Bharat Earth Movers Limited and potential divestment of shipbuilding PSUs to meet future capital requirements.

Aramane also discussed the impact of global conflicts on India's defence needs, highlighting the role of the Make-in-India programme in mitigating the shortfall in defence supplies.

He emphasised a policy of mutual co-dependence and self-reliance.

Finally, Aramane confirmed the progress in the General Electric-Hindustan Aeronautics Limited deal and assured that the government does not foresee any hurdles in the delivery of the S400 air defence system from Russia.