The private defence sector is beginning to get a level playing field in the domestic market

New Delhi: Defence is among the toughest spaces to do business in and it’s a monopsony, meaning there’s just one buyer, the government. The hardware is produced both by the public sector and private sector, but the buyer is still the same, even if it’s exported. In recent years, the Indian government has begun pushing defence exports by getting Indian industry to sell to other nations. In 2023-24, India recorded defence exports worth ₹21,000 crore.

Now, the nation aims to achieve the target of defence exports worth ₹35,000 crore by 2025. Will it be able to achieve this target? The private sector is playing a significant role. So, how is the government helping and cooperating?

“Prime Minister Narendra Modi’s Aatmanirbhar Bharat and Make in India policies helped us achieve certain export targets in the last two to three years. We are on track to achieving this target. We will probably cross that target based on the numbers achieved in the fiscal year 2023-24: ₹21,000 crores,” Baba Kalyani, Managing Director of Bharat Forge, told News9 Plus Editor Sandeep Unnithan.

Vision 2030

Kalyani aims to make India the number one manufacturer in the artillery sector. According to him, it is a milestone because India has never exported so much arms and ammunition, from artillery guns to drones, and rifles. All of these have been a part of India’s largest export push.

“It is my vision and dream to be among the top three artillery exporters in the world. Now we are number one in the business. So we are targeting that in the artillery sector, we will be the largest manufacturer in the world with the best of technologies. We plan to achieve that target by 2030,” Kalyani says.

“India’s neutral stance has also helped to get support from many countries willing to do business with India in the defence sector,” he adds.

India’s Defence Journey

Initially, the country only exported defence uniforms and parachutes. Now, it has started exporting advanced weapons. “Today, India is exporting very advanced defence machinery. It is not just exporting uniforms and parachutes like it used to be in the past. This shows how capable the Indian industry is – both the private and the public sector,” Kalyani says.

“The private defence sector is beginning to get equal opportunities in the domestic market. The only problem, however, is a large part of the procurement is happening through emergency purchases which have a value cap of ₹350 crore. To build a large-scale defence industry, long-term contracts need to be awarded,” he explains.

(With Agency Inputs)