Defence production crosses Rs 1 lakh crore mark for the first time ever

Tags: Economy/Finance Defence National News

The value of defense production in the financial year (FY) 2022-23 has crossed the Rs one lakh crore mark for the first time.

An overview of the news

• The value is currently Rs 1,06,800 crore and may increase further once data is received from the remaining private defense industries.

• The present value of defense production in FY 2022-23 is over 12 per cent higher than Rs 95,000 crore in FY 2021-22.

Government's efforts to boost defense production

• Simplified defence industrial licensing, relaxation of export controls and grant of No Objection Certificate.

• Specific incentives introduced under the foreign trade policy.

• Defence Production & Export Promotion Policy 2020.

• The government had issued two "positive indigenization lists" which included 209 items that could not be imported.

• The government has also announced two dedicated corridors in Tamil Nadu and Uttar Pradesh to act as clusters of defense manufacturing.

• The number of defense licenses issued by the government to industries has increased by almost 200 per cent in the last 7-8 years.

• These measures have given a boost to the defense industrial manufacturing ecosystem in the country and have generated tremendous employment opportunities.

The vision of the government

• To achieve a turnover of $25 billion, including exports of $5 billion in aerospace and defence goods and services by 2025.