India’s defence manufacturing sector has been witnessing a CAGR of 3.9% between 2016 and 2020. The Indian government has set the defence production target at US$ 25.00 billion by 2025 (including US$ 5 billion from exports by 2025). Also, defence exports in the country witnessed strong growth in the last two years.
On other hand, India’s Aerospace & Defence manufacturing sector is a strategically critical sector. It is witnessing rapid growth with capital expenditure expected to be about USD 250 billion over the next 10 years with a major of emphasis on ‘Make in India’. The ‘Make in India’ initiative pushed for self-reliance, aiming for domestic production of 70% of India’s defence needs. The A&D manufacturing sector has been identified as one of the most prominent sectors under “Make in India” to realize the USD 5 Trillion economy by 2024.
Furthermore, Union Budget 2022 Defence Allocation focuses on the new policies to institutionalizing, streamlining and simplifying defence procurement procedures to boost the “Aatmanirbhar Bharat” initiative, by promoting indigenous design, development & manufacturing of defence equipment, platforms, systems and sub-systems.