The Government has taken several policy initiatives and brought reforms to encourage indigenous design, development and manufacture of defence equipment within the country, with an aim to reduce dependency on imports. These initiatives, inter-alia, include according priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020; Notification of two ‘Positive Indigenisation Lists’ of total 209 items for which there would be an embargo on the import beyond the timeline indicated against them; Simplification of Industrial licensing process with longer validity period; Liberalization of FDI policy allowing 74% FDI under automatic route; Simplification of Make Procedure; Launch of Innovations for Defence Excellence (iDEX) scheme involving Startups& MSMEs; Implementation of ‘Public Procurement (Preference to Make in India), Order 2017’; Launch of an Indigenization Portal namely ‘SRIJAN’ to facilitate indigenisation by Indian Industry including MSMEs; Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers and establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu.
As per the data received from Controller General of Defence Accounts (CGDA), the details of procurement of defence equipment (both Capital and Revenue) by the three Services (Army, Navy and Air Force) in the last three years and the current year (Upto September, 2021) are as follows:
(Value in Rs Crore)
| Year | Total expenditure on Procurement (both capital and revenue) | Expenditure on Procurement (both capital and revenue) from Domestic sources | Expenditure on Procurement (both capital and revenue) from Foreign sources |
| 2018-2019 | 93474 | 50500 | 42974 |
| 2019-2020 | 108340 | 63722 | 44618 |
| 2020-2021 | 139341 | 88632 | 50709 |
| 2021-22 (Upto September, 2021) | 62975 | 41724 | 21251 |
Capital Procurement of defence equipment are undertaken from various domestic as well as foreign vendors, based on threat perception, operational challenges and technological changes and to keep the Armed Forces in a state of readiness.
Prior to 2014, during 2012-13 & 2013-14, 115 contracts were signed, out of which 49 contracts were signed with foreign vendors for capital procurement of defence equipment for Armed Forces. The major defence equipments imported during the said period include aircrafts, helicopters, missiles etc.
Based on the export Authorisations/ Licenses issued by Department of Defence Production and actual exports done by Defence Public Sector Undertakings (DPSUs) and private industries, some of major items exported in the past few years, are Fast Patrol Vessels, Coastal Surveillance System (CSS), Light Weight Torpedoes, Light Weight Torpedo Launcher and Parts, Do-228 Aircraft, Wheeled Infantry Carrier, Light Specialist Vehicle, Mine Protected Vehicle, Passive Night Sights, Battle Field Surveillance Radar Extended Range, Integrated Anti-Submarine Warfare, Advanced Weapons Simulator, Personal Protective items, 155mm Artillery Gun Ammunition, Small Arms and Ammunitions, Weapon locating Radars, Identification of Friend or Foe (IFF) –Interrogator etc. Further, the value of defence exports during the last four year and the current year (Upto November, 2021) is as under:
| Year | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 (Upto November, 2021) |
| Value of Export Authorisation (Rs. in Crore) | 4682 | 10746 | 9116 | 8435 | 4586 |
Considering the strategic sensitivity of the matter and in the interest of national security, the country-wise details of exports and imports cannot be divulged.
Further, year-wise annual Turnover as obtained from Defence Public Sector Undertakings (PSUs), other PSUs and private companies operating in defence for the last four years and the current year (Upto September, 2021) is as below:
| Year | Private Companies | DPSUs & Other Public Sector Undertakings | Total Production (in Rs Cr) |
| 2017-18 | 15347 | 63473 | 78820 |
| 2018-19 | 17350 | 63770 | 81120 |
| 2019-20 | 15894 | 62676 | 78570 |
| 2020-21 | 17292 | 67375 | 84667 |
| 2021-22 (Till September, 2021) | 8483 | 25860 | 34343 |
This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Balak Nath and others in Lok Sabha today.