India’s MoD and its review for 2024

The year 2024 witnessed some major achievements and breakthroughs as Ministry of Defence (MoD) marched ahead with “renewed vigour to make India a strong, secure, self-reliant and prosperous nation”. Some of the major highlights of 2024 included:

India-China border consensus: India and China achieved a broad consensus to restore the ground situation in certain areas along the LAC. Both countries have been holding talks at diplomatic and military levels to resolve the differences in some areas along the LAC. As a result, a broad consensus was developed on the basis of equal and mutual security. Raksha Mantri, during the Chanakya Defence Dialogue in October 2024, described the consensus as proof that continuous dialogue brings solutions.

Positive Indigenisation List: To boost Aatmanirbharta in defence and minimise imports by DPSUs, Department of Defence Production in July, notified the fifth Positive Indigenisation List (PIL) consisting of 346 items. These included strategically important line replacement units/systems, sub-systems, assemblies, sub-assemblies, spares/components and raw materials. Earlier, four PILs comprising 4,666 items were notified by the DDP for DPSUs, of which 2,972 items, having import substitution value worth Rs 3,400 crore, have already been indigenised. These five lists for DPSUs are in addition to the five PILs of 509 items notified by the Department of Military Affairs. These lists include highly complex systems, sensors, weapons and ammunition.

Record Defence Production: MoD achieved the highest ever growth in indigenous defence production in value terms during Financial Year (FY) 2023-24, on the back of successful implementation of the policies and initiatives of the Government. The defence production went up to a record-high figure of Rs 1,26,887 crore, reflecting a growth of 16.7% over the defence production of the previous financial year. The value of defence production in FY 2022-23 was Rs 1,08,684 crore. Of the total value of production in 2023-24, about 79.2% has been contributed by DPSUs/other PSUs and 20.8% by the private sector. The data shows that in terms of absolute value, both DPSUs/PSUs and private sector have recorded a steady growth in defence production. MoD has set a target to achieve Rs three lakh crore defence production by 2029.

Record Defence Exports: Defence exports touched a record Rs 21,083 crore (approx. US$ 2.63 billion) in the FY2023-24, a growth of 32.5% over the previous fiscal when the figure was Rs 15,920 crore. The figures indicated that the exports grew by 31 times in the last 10 years as compared to FY 2013-14. The defence industry, including the private sector and DPSUs, have made tremendous efforts in achieving the highest ever exports. The private sector and DPSUs contributed about 60% and 40% respectively. Raksha Mantri has exuded confidence that the target to export defence equipment worth Rs 50,000 crore by 2029 will be met.

C-295 Tata Aircraft Complex: Prime Minister Narendra Modi and his Spanish President Mr Pedro Sanchez jointly inaugurated the Tata Aircraft Complex for manufacturing of C-295 transport aircraft at Tata advanced systems limited Campus in Vadodara, Gujarat in October 2024. In September 2021, MoD had signed a Rs 21,935-crore contract with Airbus Defence and Space SA, Spain for supply of 56 aircraft; 16 to be brought in fly away condition from Spain and 40 to be built in India by TASL. Of the 16 aircraft, six have already been inducted into IAF at 11 Sqn based at Vadodara. The last would be delivered by August 2025. The first Made-in-India C-295 is expected to be rolled out of the Final Assembly Line facility at Vadodara by September 2026 and the remaining by August 2031.

Indian Light Tank: Indian Light Tank (ILT) ‘Zorawar’ has achieved a major milestone by firing a number of rounds at different ranges at an altitude of more than 4200m (High Altitude Location) with consistently accurate results. This was subsequent to the Phase I trial in desert environment in September 2024. This light tank has been defined, designed and developed by Combat Vehicles Research & Development Establishment, the Chennai based laboratory of DRDO for the Indian Army. It is manufactured by the industry partner Larsen & Toubro Precision Engineering & Systems. During the field trials conducted in the desert terrain, the Light Tank demonstrated “exceptional performance, efficiently meeting all the intended objectives”.