India’s Defence Exports Surge To Rs 21,083 Cr, On Track To Achieve DPEPP 2020 Goal

(MENAFN- KNN India)
New Delhi, Feb 17 (KNN) The Defence Production and Export Promotion Policy (DPEPP) 2020, which set a target of Rs 35,000 crore (USD 5 billion at the time) in defence exports by 2025, has shown significant progress according to recent data presented by Defence Minister Rajnath Singh.

Current figures indicate that India has achieved exports worth Rs 21,083 crore, demonstrating substantial advancement toward the target. At current exchange rates, the original USD 5 billion target would now equate to approximately Rs 43,000 crore.

Despite remaining a net importer of defence equipment, India has established itself as an emerging exporter of arms and ammunition, with a diverse portfolio that includes radars, electronics, rockets, naval platforms, drones, and various components.

These products are now being exported to over 100 countries globally, marking a significant expansion of India’s defence industry footprint.

Indigenous systems developed by the Defence Research and Development Organisation (DRDO), such as the Akash and BrahMos missiles, are gaining traction in international markets due to their competitive pricing, reportedly costing 30 percent to 40 percent less than comparable Western and Russian alternatives.

Major contributions to this export growth come from established companies like Hindustan Aeronautics, Bharat Dynamics, Bharat Electronics, L&T, and Mishra Dhatu Nigam.

India’s geopolitical positioning has proven advantageous in securing export agreements. Southeast Asian nations including the Philippines, Indonesia, and Vietnam view India as a strategic counterbalance to China’s regional influence.

Meanwhile, countries in the Middle East and Africa appreciate India’s non-interventionist approach and reputation as a reliable supplier that does not impose political conditions typically associated with Western nations.

In a notable development that signals India’s evolving role in the global defence market, France is in advanced negotiations to acquire India’s Pinaka multi-barrel rocket launcher system.

This potential agreement represents a strategic shift, given France’s traditional position as a supplier to India rather than a buyer of Indian defence products.

India’s competitive advantage in the defence export market stems from multiple factors. Lower labor and production costs enable competitive pricing without compromising quality standards.

Additionally, India offers favorable financing options, including deferred payment plans and government-backed credit lines.

For instance, the Export-Import Bank of India extended a USD 100 million credit line to Vietnam specifically for defence purchases, strengthening strategic cooperation between the two nations.

The Reserve Bank of India further supports these initiatives through export credit schemes with competitive interest rates, enhancing the financial feasibility for potential buyers.

The government’s commitment to defence modernisation and self-reliance is evident in the budget allocation of Rs 1.80 lakh crore for the Armed Forces’ capital expenditure, with Rs 1.12 lakh crore designated for procurement from domestic industries.

The Defence Research and Development Organisation has received an increased allocation of Rs 26,816.8 crore, representing a 12.5 percent increase, with Rs 14,923.82 crore specifically allocated for capital expenditure and research and development projects.

(KNN Bureau)

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