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At ₹1.27 lakh crore, defence production registered a new high in 2023-24, says Centre

At ₹1.27 lakh crore, defence production registered a new high in 2023-24, says Centre

Editor 06 Jul 6 min
Tags: GS 3

Why in the news?

The Hindu : Page 03

Syllabus : GS 3 : Indian Economy

India’s defence production reached a record ₹1,26,887 crore in FY 2023-24, a 16.7% increase, driven by policy reforms and the “Make in India” initiative.

  •   Defence exports also hit a high of ₹21,083 crore, growing 32.5% over the previous year.
  •   Defence Public Sector Undertakings (DPSUs), other PSUs, and private companies contributed to this growth.
  •   DPSUs and other PSUs accounted for 79.2% of the total value of production, while the private sector contributed 20.8%.
  •  The increase in defence production is attributed to government policy reforms, initiatives, and improved ease of doing business over the past decade.
  •   Defence Minister highlighted the success of the “Make in India” program and reaffirmed the government’s commitment to developing India as a leading global defence manufacturing hub.
  •    Defence exports also saw significant growth, reaching ₹21,083 crore in FY 2023-24, a 32.5% increase from ₹15,920 crore in the previous fiscal year.
  •    Over the past five years, the value of defence production in India has grown by over 60%, demonstrating a steady increase.
  •    The Ministry noted that the rise in defence exports has significantly contributed to the overall growth in indigenous defence production.

Defense Production Initiatives by the Government of India

1. ADITI 2.0 and DISC 12 (Defence India Startup Challenge)

  • Objective: ADITI (Acing Development of Innovative Technologies with iDEX) 2.0 and DISC 12 aim to foster innovation and entrepreneurship in critical and strategic defense technologies.
  • Focus Areas: ADITI 2.0 features 19 challenges in fields such as AI, Quantum Technology, military communication, anti-drone systems, and adaptive camouflage. DISC 12 presents 41 challenges in domains like UAVs, AI, Networking & Communication, and introduces a new initiative called Medical Innovations & Research Advancement (MIRA).
  • Support: ADITI 2.0 offers grants up to ₹25 crore to winners, while DISC 12 provides grants up to ₹1.5 crore to support development and commercialization​.

2. Innovations for Defence Excellence (iDEX)

  • Description: iDEX is a flagship initiative under the Ministry of Defence to promote innovation and technology development in the defense and aerospace sectors. It connects start-ups, MSMEs, and innovators with the Indian Armed Forces to co-create technology solutions.
  • Achievements: Over 9,000 applications received, collaboration with 450+ start-ups & MSMEs, and procurement orders worth ₹1,000 crore placed for 26 iDEX products​.

3. Technology Development Fund (TDF)

  • Objective: TDF aims to develop defense technologies through private-sector partnerships. DRDO has sanctioned seven new projects under this fund, emphasizing the importance of industry collaboration in advancing defense capabilities.
  • Focus Areas: New projects include advancements in monitoring systems, quantum technology, structural systems, drone technology, and more​.

4. DefConnect 2024

  • Highlights: DefConnect 2024 showcased innovations in AI, robotics, undersea detection, UAVs, wearable technology, blast-proof structures, smart textiles, and cyber security by Indian start-ups. A rolling iDEX internship program was also launched to nurture young talent in defense technology​.

 

PYQ Prelims (2012)

Ques. What is/are the recent policy initiative(s)of Government of India to promote the growth of manufacturing sector?

1.     Setting up of National Investment and Manufacturing Zones

2.     Providing the benefit of ‘single window clearance’

3.     Establishing the Technology Acquisition and Development Fund

Select the correct answer using the codes given below:

a)     1 only

b)     2 and 3 only

c)     1 and 3 only

d)     1, 2 and 3

Ans: (d)


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