The second-largest armed force in India, the Defence sector, is on the verge of revolution. The Defense and Aerospace sector has been designated by the government as a focal point for the “Aatmanirbhar Bharat,” or Self-Reliant India initiative. There is a strong emphasis on the establishment of domestic manufacturing infrastructure backed by the necessary ecosystem for research and development.
The Union Budget 2023–24 includes an increase of 6.7% over FY 2022–2023 in capital allocations of INR 1,62,600 Cr for the modernization and infrastructure development of the Defense Services. Budget 2023–24 gives the industry INR 5.94 Lakh Cr, a 13% increase over the previous year.
By 2025, the Ministry of Defence wants to see INR 1.75 Lakh Cr in revenue from aerospace and defense manufacturing, including INR 35,000 Cr in exports. A total of 606 industrial licenses have been granted to 369 businesses engaged in the defense sector as of April 2023.
Through the development of a strong regulatory framework and encouraging legislation, the government hopes to promote the domestic defense industry by ensuring openness, predictability, and ease of doing business. In order to achieve this, the government has implemented measures such as deregulation, export promotion, license reduction, and liberalization of foreign investment. There are 411 military items in the four Positive Indigenization Lists that the Department of Military Affairs (DMA) has released. Furthermore, FDI in the defense sector has increased to 100% through the government route and up to 74% through the automatic route in an effort to liberalize foreign investments and promote exports.
List of Top 3 Defence in India (BSE) based on Net Sales.
| Company Name | Net Sales (Rs. cr) |
| Bharat Dynamics | 2,489.39 |
| Astra Microwave | 807.27 |
| Paras Defence | 214.28 |
Source: BSE, India, last updated 27 February, 2024
This news is a creative derivative product from articles published in famous peer-reviewed journals and Govt reports:
Reference:
1. Chuter, D. (2010). Governing and managing the defence sector.
2. MacBryde, J., Paton, S., Bayliss, M., & Grant, N. (2014). Transformation in the defence sector: The critical role of performance measurement. Management Accounting Research, 25(2), 157-172.
3. Bibby, L., & Dehe, B. (2018). Defining and assessing industry 4.0 maturity levels–case of the defence sector. Production Planning & Control, 29(12), 1030-1043.
4. Busachi, A., Erkoyuncu, J., Colegrove, P., Martina, F., Watts, C., & Drake, R. (2017). A review of Additive Manufacturing technology and Cost Estimation techniques for the defence sector. CIRP Journal of Manufacturing Science and Technology, 19, 117-128.
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