The Ministry of Defence’s persistent efforts have yielded remarkable results as the value of defence production in the Financial Year (FY) 2022-23 has surpassed a significant milestone, crossing the mark of Rs one lakh crore for the first time ever.
Presently, the value stands at Rs 1,06,800 crore, and it is expected to rise further as data from the remaining private defence industries is received. This noteworthy achievement reflects a growth of over 12 percent compared to FY 2021-22, which recorded a figure of Rs 95,000 crore.
The government has been actively collaborating with defense industries and their associations to address their challenges and foster defence production within the country. Several policy reforms have been implemented to enhance the ease of doing business, with a specific focus on integrating Micro, Small, and Medium Enterprises (MSMEs) and start-ups into the defense supply chain.
Due to these reforms, industries, including MSMEs and start-ups, are increasingly engaged in defence design, development, and manufacturing. In the past 7-8 years, there has been an impressive surge of nearly 200 percent in the number of defense licenses issued by the government to industries. These measures have not only invigorated the defense industrial manufacturing ecosystem but have also created a multitude of employment opportunities.
