Defence Ministry prioritises capabilities after 2024 production and export peaks
defence ministry will be focusing sharply on capability enhancement of the armed forces in 2025, with several major inductions planned and contracts to be signed.
ENHANCED PRODUCTION
2024 saw a record increase in indigenous defence production, with the value reaching ₹1.26 lakh crore, driven largely by initiatives of the government to ink maximum contracts with Indian vendors and encourage 'Make in India'. The 16.7% bump-up also reflected a significant increase in defence exports, with the number reaching ₹21, 083 crore in the calendar year.
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This number is expected to climb steadily as global turmoil continues and the Indian defence ecosystem, particularly the private sector, investing heavily in enhancing production capacity. In 2024, many companies initiated investments in setting up ammunition manufacturing plants. At the latest count, at least seven new plants are coming up in the country that will produce different grades of ammunition, including 155mm artillery shells that are in heavy demand across the world.
Coming up across the country, from Himachal Pradesh to Maharashtra, these plants will cater particularly to the European market that has seen a depletion in reserves due to the Ukraine-Russia war. The 32.5% growth in defence exports in 2024 reflects not only exports of ammunition and
