Page 81 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

A double-barrelled opportunity: Domestic and exports
India’s defence focus is aimed at promoting self-reliance and catering to domestic market. Policymaking
has built in defence exports into the equation as well. Traction in defence exports is already visible—in In FY22, India’s
FY22, defence exports touched USD2bn (versus sub-USD1bn two years ago).The annual exports target defence exports
is USD5bn by FY25. touched about
USD2 billion (up from
According to the Department of Defence Production, about 50 private companies contributed to sub-USD1 billion a
defence exports making up 70–90% of total exports value. India has exported equipment as well as couple of years ago)
systems to Italy, Sri Lanka, Russia, Maldives, Mauritius, Nepal, France, Egypt, Israel, Bhutan, the UAE,
Saudi Arabia, Ethiopia, the Philippines, Poland, Spain and Chile. BrahMos and Pinaka rocket launchers,
ATAGS and ALH Prachand are some systems that India exports.
Manufacturing renaissance

Big success stories rest on a set of complementary moves. China, once the backyard of the global
economic landscape, emerged as the global manufacturing powerhouse because of the vision, resolve
and the preparation of its policymakers and a conducive global landscape—the sun was setting on
the Japanese economic miracle, the Asian Tigers were injured and trade barriers were vanishing fast.
It is against this backdrop that China entered the WTO, and the rest is history.
We argue India too is confronting such a coming together of virtue and fortune. After a long time,
a new vision and activism is afoot in India’s policymaking circles with the understanding that
manufacturing and infrastructure must go hand-in-hand to make a mark. At the same time, global
economic and evolving geopolitical milieu is opening the doors to immense opportunities. Offshoring
is giving way to friend-shoring and defence security arrangements are being reviewed in light of the
emerging multipolar world. Besides, India stands young even as the world, including China, is aging.
A much-needed manufacturing renaissance may be in the offing in India.

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