With India pressing ahead with reducing import dependence for strategic autonomy, nine of the total 16 defence PSUs have together projected export of military products to the tune of ₹2,100 crore in FY 2024-25, with Hindustan Aeronautics Ltd (HAL) pitching the highest at ₹590 crore.

The defence export in FY 2023-24 stood at ₹21,083 crore, up from ₹15,918.16 crore in FY 2022-23.

Of that, the value of exports by private sector was around ₹15,000 crore and that from the DPSUs was ₹6,000 crore, as per Standing Committee on Defence report tabled in parliament on Tuesday.

India exports different defence items to about 100 countries. The Committee report is on demands for grants (2024-25) for general defence budget, and other organisations — such as Border Roads Organisation and defence PSUs.

On its report on demands for grants of the DPSUs, the committee stated that that the old state-owned companies like HAL’s projected export target in 2024-25 is ₹590 crore. While its turnover was ₹28162 crore in 2023-24 and Profit after Tax (PAT) was ₹7595 crore.

Export Turnover

Next to HAL is Bharat Dynamics Ltd (BDL) which has pitched export turnover in this FY at ₹500 crore. It’s turnover was ₹2369 crore in 2023-24 and PAT recorded at ₹613 crore.

BEML Limited, former known as Bharat Earth Movers Ltd, has projected export turnover in FY 2024-25 at ₹440 crore. However, its turnover was ₹4054 crore and PAT ₹283 crore, both in last FY.

Likewise, Bharat Electronics Ltd’s export target in this FY is ₹120 crore while its turnover of ₹25378 crore was in FY 2023-24 and PAT ₹4020 crore.

Of the three ship building PSU — Garden Reach Shipbuilders and Engineers (GRSE) Ltd, Goa Shipyard Ltd (GSL) and Hindustan Shipyard Ltd (HSL) — shortlisted by the Standing Committee on Defence for review of demands of grants, GLS has projected export turnover in FY 2024-25 at ₹85 crore.

Its turnover was ₹1635.71 crore in last FY and PAT ₹271.32 crore.

The GRSE stood second with export planned in current FY is estimated to be worth ₹80 crore. The Kolkata -based shipbuilder’s production value was ₹3588 crore in FY 2023-24 and PAT ₹357 crore.

The HSL, said the report, “is not eligible for bidding in view negative net worth”. However, the Visakhapatnam-based shipbuilders is exploring Vietnam People’s Navy submarine refit apart from the repairs it did of Belgium Dredger “TSHD Bonny River” in March, this year.

Parliamentary Panel Report

The parliamentary panel report also stated that the Foreign Direct Investment (FDI) has increased nearly three times in the last decade, from ₹1,388.21 crore in 2014 to ₹5,516.16 crore in 2024.

The uptick in the inflow of foreign investment was following liberalisation of the FDI policy in September 2022. The FDI limit was enhanced from 49 percent to 74 percent under the automatic route and 100 percent under the government route.

Though the Committee report does not give an year-wise break-up of the FDI, the Ministry of Defence (MoD), in a reply to members’ query, clarified there is no FDI in the about six listed defence PSUs like, HAL, BEL, and MDL but FIIs have picked up equity in them.