Steps Taken to Increase Indigenous Defence Production

The value of indigenous defence production, which includes the value of production as obtained from DPSUs, erstwhile OFB, other PSUs manufacturing defence products and Private Industries, for the last two years is as follows:



Financial Year DPSUs Erstwhile






Total value

(Rs in Crores)

1 2019-2020 47,168.00 9,213.00 6,294.58 15,893.70 78,569.28
2 2020-2021 46,711.19 14,635.00 6,029.06 17,291.59 84,666.84

Further, employment data is not maintained in the Ministry of Defence.

 In the General Budget 2018-19, Central Government announced setting up of 02 (two) Defence Industrial Corridors (DICs) in the country. In pursuance of the said announcement, it was further decided to set up one of these Corridors in Uttar Pradesh (UP) and another in Tamil Nadu (TN). Subsequently, six nodes, namely Aligarh, Agra, Chitrakoot, Jhansi, Kanpur and Lucknow were identified for Uttar Pradesh Defence Industrial Corridor(UPDIC) and five nodes namely Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli for Tamil Nadu Defence Industrial Corridor (TNDIC). Defence Industrial Corridors (DICs) are aimed at providing a fillip to the defence manufacturing ecosystem in both the States and attract investment worth Rs 10,000 crore in each of the DICs by the year 2024-25. The respective State Governments have taken action for the acquisition of land and the development of necessary infrastructures like road connectivity, basic amenities and security.

To enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the production units of the Ordnance Factory Board have been converted and corporatized into 7 new Defence Companies. This restructuring has been aimed at transforming the Ordnance Factories into Productive and profitable assets; deepening specialization in the product range; enhancing competitiveness, and improving quality and cost-efficiency. The new structure enables the companies to become competitive and explore new opportunities in the market including exports. These new Defence Companies have the potential to grow in the domestic market through product diversification and import substitution, in addition to growth in exports. The government has decided to grandfather the indents/orders worth more than 62,000 crores pending with OFB post corporatization, to ensure continuity in the supply of strategic arms and ammunition to the Services.

This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Mahesh Poddar in Rajya Sabha today.

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