TATA-Airbus facility to bolster India’s journey toward Atmanirbharta in defence: Centre

The inauguration of the TATA Aircraft Complex in Gujarat's Vadodara to manufacture C-295 military transport aircraft marks a key milestone in India’s journey toward Atmanirbharta in defence, as the country reached Rs 1.27 lakh crore in domestic defence production in FY24, the government said on Tuesday.

According to data from all defence public sector undertakings (DPSUs), other public sector units manufacturing defence items, and private companies, the value of defence production has surged to a record high of Rs 1,27,265 crore, representing an impressive increase of approximately 174 per cent from Rs 46,429 crore in FY 2014-15, according to a Ministry of Defence statement.

The defence exports have reached an all-time high, surging from Rs 686 crore in FY 2013-14 to Rs 21,083 crore in FY 2023-24, reflecting a remarkable increase of over 30 times in export value over the past decade.

Notably, defence exports also experienced a substantial growth of 32.5 per cent over the previous fiscal year, rising from Rs 15,920 crore.

India exports to over 100 nations, with the top three destinations for defence exports in 2023-24 being the US, France and Armenia.

According to Defence Minister Rajnath Singh, the target is to further increase defence exports to Rs 50,000 crore by 2029.

“This expanding international footprint underscores India’s commitment to becoming a reliable defence partner globally while bolstering its economic growth through enhanced defence production and exports,” said the ministry.

Historically, India relied heavily on foreign countries for its defence needs, with about 65-70 per cent of defence equipment being imported.

“However, this landscape has dramatically shifted, with around 65 per cent of defence equipment now manufactured within India,” said the ministry.

The country’s defence industrial base comprises 16 DPSUs, over 430 licensed companies, and approximately 16,000 micro, small and medium enterprises (MSMEs). Notably, 21 per cent of this production comes from the private sector, bolstering India's journey toward self-reliance.

The TATA Aircraft Complex has become the first private sector final assembly line (FAL) for military aircraft in India, underscoring the government’s commitment to enhancing indigenous production capabilities.

Under the programme, 56 C-295 aircraft will be delivered, with the initial 16 arriving from Airbus in Spain and the remaining 40 produced domestically.