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  • DAILY CURRENT AFFAIRS:India’s defence export touches Rs 13,000 crore in 2021-22

India’s defence export touches Rs 13,000 crore in 2021-22

Tags: Defence

According to the Union Ministry of Defence, the export of defence products from India in 2021-22 touched a record Rs 13,000 crore. It is the highest ever defence export from India in a financial year.

  • The U.S. was a major buyer of Indian defence products along with countries in Southeast Asia, West Asia and Africa.
  • The increasing defence export to the United States is mainly due to the increasing closeness in the defence ties between India and the United States.
  • American defence companies are increasingly setting up joint ventures in India with Indian companies. These defence companies are  increasingly becoming a part of the supply chains of U.S. defence companies and the US defence companies are sourcing defence equipment and parts from Indian companies .
  • India, which is the world's largest importer of military hardware in the world and it wants to increase defence exports from India.  
  • India has set a target of clocking defence exports worth $5 billion by 2024.
  • India’s defence exports recorded nearly a six fold increase between 2017 and 2021, increasing from Rs. 1,520 crore to Rs. 8,435 crore during that period.

Private sector dominance in export 

  • According to the Additional secretary defence production Sanjay Jaju, private sector contribution in the defence export was 70% while the public sector accounted for the remaining 30%.
  • Earlier, the private sector used to account for 90% but now the share of defence public sector units has gone up.
  • In a major boost to Indian defence exports, India’s BrahMos Aerospace and the Philippines signed a deal worth almost $375 million for the Philippine Marines to acquire three batteries of the BrahMos cruise missile in January 2022.

Defence export and government policy steps        

  • Military hardware being exported by India include missiles, the advanced light helicopter, offshore patrol vessels, personal protective gear, surveillance systems and a variety of radars.
  • The military hardware that holds export potential includes the light combat aircraft, Astra beyond-visual-range air-to-air missile, Akash surface-to-air missile system, tanks, sonars and radars.
  • In December 2020, the Union Cabinet, headed by Prime Minister Narendra Modi, gave its go-ahead to the sale of Akash missile systems to friendly foreign countries.
  •  It also created a high-powered panel for swifter approvals to export of military hardware.

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