Defence Sector: Mastering Record Production and Exports for UPSC
Q. With reference to India’s defence sector reforms in 2025, consider the following statements:
1. The Defence Procurement Manual (DPM) 2025 was launched to streamline capital acquisitions for the Indian Armed Forces.
2. In FY 2024-25, the private sector's share in India’s total defence production reached approximately 23%.
3. India has set a target to achieve defence exports worth ₹50,000 crore by 2029.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Context
India has recorded its highest-ever defence production value of ₹1.54 lakh crore in FY 2024-25, alongside record exports of ₹23,622 crore. This milestone reflects the success of the Atmanirbhar Bharat initiative and the government's strategic shift from a major importer to a burgeoning global defence manufacturing hub.
What is Defence Atmanirbharta?
It is the government's vision to build a self-reliant, globally competitive defence industry through policy reforms, indigenous research, and expanded private sector participation.
Key Performance Indicators (FY 2024-25):
- Total Production: ₹1.54 lakh crore.
- Total Exports: ₹23,622 crore (up 12.04% from the previous year).
- Private Sector Share: Increased to 23% in FY 2024-25.
- Export Reach: India now exports to over 100 nations, including the US, France, and Armenia.
Key Procurement Frameworks
The transformation is driven by two flagship frameworks that streamline how the Armed Forces acquire equipment.
1. DAP 2020 (Capital Procurement)
The Defence Acquisition Procedure (DAP) 2020 prioritizes the Buy (Indian-IDDM) category. It focuses on systems that are Indigenously Designed, Developed, and Manufactured. It also integrates cutting-edge technologies like AI, robotics, and space.
2. DPM 2025 (Revenue Procurement)
Launched in October 2025 (effective 1 November 2025), the Defence Procurement Manual (DPM) 2025 simplifies revenue procurement worth approximately ₹1 lakh crore.
- Key Highlight: Reduced liquidated damages (0.1% per week for indigenisation projects) and guaranteed orders for up to five years.
Industrial Growth & Innovation
- Defence Industrial Corridors: Two corridors—UP (UPDIC) and Tamil Nadu (TNDIC)—have attracted over ₹9,145 crore in investments as of October 2025.
- MSME Ecosystem: Over 16,000 MSMEs are now active game-changers in the defence supply chain.
- TDF Scheme: A corpus of ₹500 crore caters to deep-tech and cutting-edge projects under the Technology Development Fund.
Significance
This growth marks a "decisive shift" in India's strategic sovereignty. Beyond strengthening national security, the expansion of defence exports serves as a tool of Export Diplomacy, building trust and long-term partnerships with friendly foreign countries through the supply of arms, ammunition, and sub-systems.
🎯 Analysis & Insights
Prelims mastery
Correct Answer: (b) 2 and 3 only.
Reasoning: DPM 2025 focuses on Revenue Procurement, not capital acquisitions (handled by DAP 2020). Statement 2 is correct (increased from 21% to 23%). Statement 3 is correct as the goal for 2029 is ₹3 lakh crore production and ₹50,000 crore exports.
Mains perspective
"The transition from assembly-line manufacturing to deep-tech indigenous design is the cornerstone of India’s ‘Defence Atmanirbharta’." Discuss the significance of the DPM 2025 and DAP 2020 in achieving this transition. (150 words)