Defence production hits record high of nearly Rs 1.27 lakh crore in 2023-24: MoD

New Delhi: India's annual defence production has hit a record high of approximately Rs 1.27 lakh crore in 2023-24, with the Make in India programme crossing new milestones, Defence Minister Rajnath Singh said on Friday.

The value of defence production in FY 2022-23 was Rs 1,08,684 crore, it added.

In a post on X, Singh also said that the government is committed to creating a more conducive regime for developing India as a leading global defence manufacturing hub.

Welcoming the "encouraging development", Prime Minister Narendra Modi said, "Compliments to all those who have contributed to this feat. We are fully committed to nurturing a supportive environment to further enhance our capabilities and establish India as a leading global defence manufacturing hub".

"This will enhance our security apparatus and make us Aatmanirbhar!" he said on X.

Singh said the government is committed to creating a more conducive regime for developing India as a leading global defence manufacturing hub.

"The Ministry of Defence has achieved the highest-ever growth in indigenous defence production in value terms during financial year (FY) 2023-24, on the back of successful implementation of the policies and initiatives of the government, led by Prime Minister Narendra Modi, focussing on achieving 'Aatmanirbharta'," the defence ministry said in a statement on Friday.

The annual defence production has hit a record high of approximately Rs 1.27 lakh crore in 2023-24, it said.

"As per the data received from all Defence Public Sector undertakings (DPSUs), other PSUs manufacturing defence items and private companies, the value of defence production in the country has gone up to a record-high figure, i.e., Rs 1,26,887 crore, reflecting a growth of 16.7 per cent over the defence production of the previous financial year," the statement said.

Singh congratulated the Indian industry, including defence public sector undertakings and other public sector undertakings manufacturing defence items, and the private industry for the feat.

"The Make in India programme is crossing new milestones, year after year, under the leadership of PM Shri @narendramodi," he said.

"India has registered the highest ever growth in the value of defence production in 2023-24. The value of production has reached to Rs. 1,26,887 crore in 2023-24 which is 16.8 per cent higher than the value of production of previous financial year," he wrote on X.

The defence ministry said that of "the total value of production (VoP) in 2023-24, about 79.2 per cent has been contributed by DPSUs/other PSUs and 20.8 per cent by the private sector".

The data shows that in terms of absolute value, both DPSUs/PSUs and private sector have recorded a steady growth in defence production, the statement said.

The feat has been achieved due to the policy reforms and initiatives and ease of doing business brought in by the government in the last 10 years with focus on attaining self-reliance, the ministry said.

"The indigenisation efforts have been pursued aggressively on a sustained basis, that resulted in the highest ever VoP. Moreover, the spiralling defence exports have contributed tremendously to the overall growth in the indigenous defence production," the statement said.

Defence exports touched a record-high of Rs 21,083 crore in FY 2023-24, reflecting a growth of 32.5 per cent over the last fiscal when the figure was Rs 15,920 crore, it added.

In the last five years (since 2019-20), the value of defence production has been increasing steadily, and grown by over 60 per cent, the statement said and also shared year-wise data in this period.