India reports increases in defence exports and FDI

The value of Indian defence exports over the past five years has reached INR344.13 billion (USD4.72 billion) with significant yearly increases achieved since 2015, new figures have revealed.

In a parliamentary reply on 10 February, Indian Minister of State for Defence Shripad Naik said the sales figure is based on the value of authorisations and licences that have been issued since fiscal year 2015-16 to Indian state-owned defence enterprises and private-sector firms.

According to figures provided by Naik, the value of export authorisations has increased by more than fourfold since 2015-16.

In that year the value was INR20.9 billion and by 2018-19 and 2019-20 India’s defence exports had grown to INR107.4 billion and INR91.1 billion respectively. Naik said that in 2020-21 – and up until 31 December 2020 – the value of exports was INR62.8 billion.

In another parliamentary reply, Naik said that India’s aerospace and defence (A&D) sector has also achieved major increases in the value of foreign direct investment (FDI) since 2014, the year in which the current Narendra Modi administration came to office.

According to his figures, more than two-thirds of total FDI in the country’s A&D sector has been secured since 2014. India has permitted FDI in defence since 2001.

Naik said, “So far, FDI inflows of over INR41.9 billion have been reported by companies operating in the defence and aerospace sector. Further, FDI inflows of over INR28.71 billion have been reported in the defence and aerospace sector [since] 2014.”

In terms of FDI only in the defence sector, Naik did not elaborate.