In a landmark achievement, Indian Finance Minister Nirmala Sitharaman announced that India’s defence exports have soared to a striking $2.4 billion in the current fiscal year and are slated to reach $2.88 billion by the end of fiscal year 24. The announcement was made at an event at AM Jain College, Chennai, highlighting India’s burgeoning capabilities in the global defence manufacturing sector.

Revolutionizing Defence Procurement

A notable aspect of this development is the transformative approach to procurement. The Indian defence forces are now entering into long-term contracts, spanning up to 10 years, with Micro, Small and Medium Enterprises (MSMEs) associated with defence production. This is contingent upon their products meeting the requisite standards. This marks a departure from past practices when such long-standing procurement contracts were not commonplace.

Modi’s Era: Defence Export Boom

Since Prime Minister Narendra Modi assumed office in 2014, there has been a significant surge in military exports, reporting a 23-fold increase from fiscal year 2013-14 to 2022-23. This leap can be attributed to policy reforms and simplified export procedures that have made the export process more industry-friendly and efficient.

India’s Global Footprint in Defence Exports

India currently exports defence products to over 85 countries, marking a substantial increase in its global footprint. Major importers of Indian defence products include nations like Russia, Poland, Spain, Maldives, and Nepal. The rise in these exports is a testament to India’s growing influence and prowess in the international defence manufacturing sphere.