The Defense acquisition council recently approved 24 procurement proposals worth over Rs 84,300 crore. Of these, 21 proposals worth over Rs 82,000 crore are to be procured from domestic manufacturers. The government has already released four positive defense indigenisation lists since august 2020 which includes 411 items.
The objective is to achieve $25 billion turnover in defense production and $5 billion in defense exports by 2025. Let's examine where the domestic market stands with regard to producing and acquiring defence equipment.
India's defence exports increased significantly between 2017 and 2022, from Rs 4600 crore to Rs 12,800 crore. Moreover, defence imports have surged from Rs 37,000 crore in 2017 to Rs 50,000 crore In 2022. Between 21 and 2022, the value of defence manufacturing rose from Rs 84,600 crores to Rs 94,800 crores.
Additionally, the capital expenditure by the government for defence indigenization climbed from 58 percent to 68 percent of the authorised amount.
What is the current state of India's defence indigenisation efforts, what have we accomplished so far, and what has to be done going ahead to attain self-reliance in defence?
Vishal Kanwar, ED- Aerospace and Defence PwC India, Amit Cowshish, Ex-Fin Advisor (Acquisition) Defence Ministry, Arun Ramchandani, Chairman FICCI Defence & Aerospace Comm, Head - Defence IC, L&T, and Neeraj Gupta, Chairman SIDM Intl & Exports Committee talk about these concerns in an interview with CNBC-TV18.
Watch video for full interview