Analyse the role of the private sector and DPSUs in India's defence export growth. What policy measures have enabled this shift?

India's defence exports touched a record ₹23,622 crore in FY 2024-25, a 12.04% rise over FY 2023-24 [1], up from under ₹1,000 crore in 2014. This growth rests on two distinct engines — a scale-driven private sector and a fast-catching-up DPSU segment — enabled by deliberate licensing and procedural reform.

Role of the private sector

• Contributed ₹15,233 crore of FY 2024-25 exports, roughly two-thirds of the total, largely through parts, components and sub-systems integrated into global OEM supply chains [1].
• Its strength lies in global value-chain integration rather than platform sales, making it sensitive to licensing turnaround times — precisely what recent reforms address.
• Growth has, however, plateaued (₹15,209 crore in FY 2023-24), indicating a ceiling in the components-only model [1].

Role of DPSUs

• Contributed ₹8,389 crore, growing 42.85% in a single year — the fastest-growing segment [1].
• DPSUs export complete systems and platforms, so their rise signals growing acceptance of finished Indian products abroad and deepens defence diplomacy with the ~80 countries served in FY 2024-25 [1].

Enabling policy measures

• Open General Export Licence (OGEL) — a one-time, time-bound standing licence for specified items and destinations, replacing case-by-case authorisation [2].
• SOP simplification by the Department of Defence Production for SCOMET Category 6 (Munitions List) items: simplified End User Certificate for parts and components, EUC issuable by the buying company in intra-company trade, and validity extended from two years to completion of the order [3].
• Removal of the consultation process for repeat orders, plus an end-to-end online, digitally signed portal, cutting discretion and delay [3].
• Single-window delegation — MHA delegated Arms Rules, 2016 (Form X-A) licensing powers to DDP in 2018, making it exporters' single point of contact [2].

In sum, the private sector supplies volume and DPSUs increasingly supply value, both unlocked by a shift from transactional control to trust-based, digitised facilitation. Sustaining momentum will require widening OGEL's item and destination coverage, export credit for MSMEs, and stronger design-led R&D — carrying Atmanirbhar Bharat from component supplier to platform exporter.