New Delhi: Setting a record, India’s defence production rose more than 12% year-on-year to cross ₹1 trillion rupees ($12 billion) in FY23, the government said on Friday. This is a significant milestone as India has been trying to reduce its reliance on imports from other countries.

Value of domestic defence production stands at ₹1.068 trillion, and is expected to rise further as data from private defence companies becomes available, the ministry of defence said in a statement.

India, the world’s largest arms importer in the past decade, depends on Russia for nearly half of its military supplies.

The ministry, in collaboration with defence industries and their associations, has been diligently working to address challenges and promote defence production in the country.

According to the ministry, the government has implemented several policy reforms aimed at facilitating ease of doing business, including the integration of Micro, Small, and Medium Enterprises (MSMEs) and startups into the defence supply chain.

These policy measures have encouraged active participation from various industries, including MSMEs and start-ups, in defence design, development, and manufacturing, the ministry said.

“Over the past 7-8 years, there has been a remarkable 200 percent increase in the number of defence licenses issued by the government, further stimulating the defence industrial manufacturing ecosystem in the country and creating substantial employment opportunities," it added.

Meanwhile, India’s defence exports hit an all-time high of ₹15,918 crore in fiscal year 2022-23, a 24% increase from exports worth ₹12,815 crore a year ago.