Daily News Analysis

Defence Production Hits Record High in 2023-24

stylish_lining

Key Highlights:

  • Record Production Value: India’s indigenous defense production reached a record high of ₹1.27 lakh crore in FY 2023-24, marking a 16.7% increase from the previous fiscal year.
  • Contribution by Sectors:
  • Public Sector: Defense Public Sector Undertakings (DPSUs) and other Public Sector Units (PSUs) contributed 79.2% of the total value of production.
  • Private Sector: The private sector accounted for 20.8% of the production value.
  • Defence Exports: India’s defense exports also achieved a record high of ₹21,083 crore, reflecting a 32.5% growth from the previous fiscal year’s ₹15,920 crore.

Government Measures to Enhance Defense Manufacturing:

  • Policy Reforms and Strategic Initiatives:
  • Defence Procurement Procedure (DPP):
  • Revised to boost indigenous manufacturing and increase procurement transparency.
  • Introduction of the ‘Buy (Indian-IDDM)’ category prioritizes products designed, developed, and manufactured indigenously.
  • Defence Production and Export Promotion Policy (DPEPP) 2020:
  • Requires foreign defense companies to invest part of their contract value in India, promoting technology transfer and local manufacturing.
  • Strategic Partnership Model:
  • Encourages foreign companies to partner with Indian firms, fostering technology transfer and domestic production.
  • Financial and Structural Support:
  • Foreign Direct Investment (FDI):
  • FDI limit increased to 74% through the automatic route and up to 100% with government approval for modern technology access.
  • Defense Corridors:
  • Two corridors established in Uttar Pradesh and Tamil Nadu to create a conducive manufacturing ecosystem and attract investments.
  • Budget 2023-24:
  • 75% of the defense capital budget earmarked for procurements from domestic sources.
  • Defence Offset Policy:
  • Encourages collaboration between Indian companies and foreign OEMs, supporting domestic manufacturing and technology transfer.
  • Infrastructure and Innovation:
  • Innovation for Defence Excellence (iDEX):
  • Initiative to support innovation in defense by engaging startups and MSMEs with financial support and a platform for showcasing solutions.
  • Technology Development Fund (TDF):
  • Provides grants to MSMEs, startups, and academia for R&D in defense technology and products.
  • Public-Private Partnership:
  • Ordnance Factory Board (OFB) Corporatization:
  • OFB restructured into seven new DPSUs to enhance autonomy, efficiency, and accountability.
  • Increased Role of Private Sector:
  • Private sector participation encouraged through measures like allowing private companies to bid for previously reserved contracts.

Future Goals and Projections:

  • Turnover Target: Aim to achieve a turnover of ₹1.75 lakh crore in aerospace and defense goods and services by 2025, including ₹35,000 crore from exports.

The record high in defense production and the various measures implemented reflect India's commitment to enhancing its defense manufacturing capabilities, promoting self-reliance, and fostering innovation in the sector

Understanding the Auditing of Local Bodies

Why is it in the News? The International Centre for Audit of Local Governance (iCAL) was recently inaugurated in Rajkot, Gujarat. This marks a significant step towards setting global standards for
Share It

Bavikonda Monastery: A Historical and Cultural Gem

Current Status Maintenance Issues: Due to recent budget constraints, maintenance and repairs at Bavikonda Monastery have been less than optimal. Tourism Circuit: Bavikonda is part of the '
Share It

CITES Report on Rosewood: “CITES Rosewoods: The Global Picture”

The recently released CITES report titled “CITES Rosewoods: The Global Picture” provides a comprehensive analysis of rosewood species listed under the Convention on International Trade in
Share It

Codex Alimentarius Commission (CAC)

Recent Developments  India recently took part in the 86th session of the Executive Committee (CCEXEC) of the Codex Alimentarius Commission (CAC) held in Rome. India’s Support: Sp
Share It

Naturally Existing DNA Editing Tool: Bridge Recombinase Mechanism (BRM)

The Bridge Recombinase Mechanism (BRM) is a newly discovered naturally occurring DNA editing tool. It utilizes mobile genetic elements, commonly known as "jumping genes," to perform DNA mani
Share It

The Delhi Urban Land and Immovable Property Records Bill, 2024

The Delhi Urban Land and Immovable Property Records Bill, 2024, aims to create a unified system for managing urban land and immovable property records in Delhi. This system will be overseen by the Del
Share It

Gig Economy and Recent Developments in Karnataka

Why in the News? The Karnataka government recently published the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, which aims to address the welfare and rights of gig w
Share It

India-Japan Joint Carbon Crediting Mechanism

India and Japan are set to sign a Memorandum of Cooperation (MoC) to establish a Joint Crediting Mechanism (JCM) under the framework of Article 6.2 of the Paris Agreement. This mechanism will facilita
Share It

Green Revolution in maize

Context: India has seen significant success with the green revolution in maize production. This success has been primarily driven by the private sector. Over the past 20 years, maize production in Ind
Share It

Captain Supreetha C.T. – First Woman Officer from Corps of Army Air Defence at Siachen Glacier

Name: Captain Supreetha C.T. Hometown: Mysuru, Karnataka Achievement: Captain Supreetha C.T. has become the first woman officer from the Corps of Army Air Defence to be operationally deployed a
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS