Renowned sales guru Jeffrey Gitomer once said, “Defence is not a threat to peace; it is the guarantee of peace with freedom”. It suits perfectly to the current era of scientific modernisation in uncertain economic and geopolitical times, especially for a nation with growing aspirations like India whose growing military power not just secures its sovereignty but its long-term global interests as well.
From improved border infrastructure, equipment upgradation, and procurement of state-of-the-art defensive platforms to record defence production and export, 2023 has been a path-breaking year in India’s defence journey. The country has emerged as an influential military power both at regional and global stages. Let’s take a look at how the year went for India’s military-industrial complex that serves as the backbone of the country’s defence forces.
Historic defence production
According to Union government data, the defence production in India in 2022-23 surpassed Rs1lakh crore, achieving the historic milestone by breaking the previous mark of Rs 95,000 crore recorded in 2021-22. The government actively engaged with the defence industries and their associations, confronting challenges and providing a propitious environment for defence production. Reforms in policies, such as the integration of MSMEs and start-ups in the supply chain enhanced the ease of doing business.
All-time high defence exports
Following the sustained state policies along with substantial contributions from the defence industries, India’s defence exports have reached to record high of approximately Rs 16,000 crore in 2022-23, with a notable increase of nearly Rs 3,000 crore from the previous fiscal year with India now exporting to more than 85 countries, a defence ministry report released in September 2023 said. The prominent exports included Dornier-228, 155 mm Advanced Towed Artillery Guns, Brahmos missiles, Akash Missile System, armoured vehicles, Pinaka multi-barrel rocket launchers, body armours, along with line replaceable units, and components of avionics.
Exclusive budget to boost domestic industry
A record 75 per cent of the defence capital procurement budget, valued at approximately Rs1lakh crore, was allotted for the domestic industry in 2023-24, marking a significant rise from the 68 per cent allocated in 2022-23. The Ministry of Defence received a total budget allocation of Rs5.94 lakh crore in 2023-24, constituting 13.18 per cent of the total budget of Rs45.03 lakh crore. The capital outlay for modernisation and infrastructure development witnessed a notable increase, reaching Rs1.63 lakh crore.
Focus on indigenisation
Positive Indigenisation Lists (PIL) of Department of Military Affairs (DMA) comprising hundreds of items were released by Defence Minister Rajnath Singh in 2023. The list includes highly complex systems, sensors, weapons and ammunition. The items mentioned in this list will only be procured from indigenous sources in a staggered timeline. Separately, the Department of Defence Production (DDP) has notified four PILs consisting of a total of 4,666 items, including Line Replacement Units, sub-systems, spares and components for DPSUs.
In conclusion, 2023 can undeniably be marked as a momentous chapter in India’s military-industrial complex, solidifying its standing as a formidable force on the global stage. The year witnessed unprecedented achievements showcasing the nation’s prowess in delivering cutting-edge military technology. As India strides confidently into the future, its military-industrial complex stands as a beacon of innovation, resilience, and a guarantor of peace with freedom, echoing the profound words of Jeffrey Gitomer.
Ajay Kumar Singh, OP