TSAMTO, July 9th. According to the Indian Ministry of Defense, in 2023/24, the value of military production in India reached a new record level of 1.27 trillion. Indian rupees ($15.2 billion).
According to Jane's Defense Weekly, thus, in eight years, the percentage growth in the production of PVN in the country amounted to 70%, if we compare new data from 2016/17, when such statistics began to be published. The growth compared to 2022/23 amounted to 17% (1.08 trillion Indian rupees).
The value of India's military products is the sum of the annual turnover of 16 state-owned defense enterprises (DPSU), as well as private defense enterprises.
The statistics of the Ministry of Defense of India show that about 79% of the total cost of PVN (or 1 trillion. Indian rupees) in 2023/24 ff. accounted for state-owned enterprises, including DPSU and companies that are part of the state administration of Weapons factories OFB (Ordnance Factory Board), which was restructured in 2021. The rest of the production (21%) is accounted for by private sector companies.
The Indian Ministry of Defense stated that in absolute terms, both DPSU and the private sector recorded steady growth in defense production.
The increase in production by the Indian defense sector is explained by a series of sectoral reforms carried out in recent years. These include measures to integrate private sector firms into the supply chains of large government entities and simplify licensing procedures for these companies. In 2023, the Indian Ministry of Defense announced that the number of licenses issued to private firms has increased by 200% over the past eight years.
According to the statistics of the Ministry of Defense of India, the share of the value of defense products produced by the private sector has remained relatively constant over the past 8 years and averaged about 20% of the total volume. At the same time, over the past 8 years, the total cost of PVN production by the private sector has increased by about 71%.
TSAMTO's comment:
Russia's recent achievements in the Indian market include the completion by Rosoboronexport of work on the launch of licensed production of Mango tank shots in India, as well as an officially unconfirmed project to produce about a thousand K-53949 Typhoon-K armored vehicles, the tests of which were recently completed by Armored Vehicle Nigam Limited (ANVL).
Almost all domestic production of air defense systems in India is currently organized using Soviet/Russian technologies, starting with armored vehicles and ending with combat aircraft. Some "turnaround" of India in the last decade, involving the purchase of Western weapons systems, has not been successful in terms of development (technology transfer) in the domestic market. The only exception is projects with the Israeli military-industrial complex to organize the production of air defense systems. All other new Western-style weapons systems acquired in recent years were "Indian" only declaratively.
