| | DECEMBER 20228THE PANORAMAIn FY 22, the Indian defence manufacturing segment increased its production significantly to $11.85 billion when compared to FY 21 where the production was around $10 billion. At the same time the defence production which are done by PSUs was valued at $7 billion in FY 2021-22 clocking in an impressive growth rate of 12.36 percent year on year. Keeping the potential of the Indian defence manufacturing market in mind, the government has also set a production target of $25 billion by 2025. Apart from domestic use, India also supplies defence products to 42 different countries and in FY 2021-22, the Indian defence exports was valued at $1651.1 million and the government is planning to increase the military hardware exports to $5 billion in the next five years. TAs a way to increase the domestic manufacturing of defence equipment, last year, Prime Minister Narendra Modiji has asked the seven PSUs in the defence sector to focus on developing the functional autonomy, innovation and growth of the country's defence sector. On top of that, policy makers also believe that the proactive approach taken by the government in foreign mutual trade and rising joint agreements with Kazakhstan, and the US will accelerate the growth of the country's defence manufacturing space. With that being the case, let's analyze the major trends reshaping the Indian defence manufacturing segment. SELF RELIANCE THROUGH `MAKE-IN-INDIA' To make the country more self reliant, the Ministry of Defence has signed a multitude of contracts with the Indian industry. OVERHAULING DEFENCE MANUFACTURING TO ACHIEVE SELF-RELIANCE
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