Income Distribution Declared for 2 Tata Mutual Fund Schemes

Tata Mutual Fund has announced income distribution under the IDCW (Income Distribution cum Capital Withdrawal) option for two of its schemes. The record date for this distribution has been set for today, April 2, 2025.

Applicable Schemes 

The two schemes for which income distribution has been declared are Tata Equity Savings Fund and Tata Hybrid Equity Fund. Under each of these, both the direct and regular IDCW plans will see payouts.

The distribution amount for Tata Equity Savings Fund, under both the Direct IDCW and Regular IDCW plans, has been declared at ₹0.058 per unit. For Tata Hybrid Equity Fund, the amount stands at ₹0.350 per unit under both Direct and Regular IDCW plans.

Record Date and Eligibility

Investors holding units in any of the IDCW options of the above schemes as of the record date – April 2, 2025, will be eligible to receive the announced distribution. Units must be held before the ex-dividend date for the distribution to apply.

Tax Implications

The income received under the IDCW option is subject to taxation as per the investor’s applicable income tax slab. It is treated as income from other sources and taxed accordingly. Investors should also be aware of any applicable TDS (Tax Deducted at Source) rules if they fall under specific categories.

No Change in NAV Impact

It’s important to note that the NAV (Net Asset Value) of the respective schemes will reduce to the extent of the income distribution declared, post the record date. This is a standard adjustment and reflects the payout made to the unit holders.

Conclusion

The announced IDCW payouts apply to specific plans under two Tata Mutual Fund schemes and are scheduled based on holdings as of April 2, 2025. Investors subscribed to the IDCW options of these funds should take note of the record date for potential payouts.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Growing Interest in Yen-Denominated Borrowing: Bank of India Executes Facility Agreement for ¥15 Billion

Bank of India (BOI) announced the execution of a syndicated loan agreement worth ¥15 billion (approximately $100 million). The funds are being raised through its International Banking Unit (IBU) based in GIFT City, Gujarat, and are intended for on-lending and general corporate purposes across the bank’s overseas branches.

Details of the Fundraising

According to the official press release, the ¥15 billion facility agreement was finalised by BOI’s IBU Gift City Branch. The expected receipt of funds is scheduled for 27th March 2025. This strategic move underlines the growing importance of GIFT City as a financial hub enabling Indian banks to access global capital markets efficiently.

Strengthening International Operations

The syndicated loan facility marks another step towards strengthening BOI’s global presence. By raising capital in the Japanese yen, the bank leverages the low-interest-rate environment prevalent in Japan, a tactic increasingly being adopted by Indian financial institutions looking to optimise their borrowing costs and diversify funding sources.

Growing Interest in Yen-Denominated Borrowings

Bank of India joins a growing list of Indian borrowers who have recently tapped into the yen loan market, including major entities such as Reliance Industries, REC Ltd., and Tata Semiconductor. The Japanese market, with its stable financial environment and attractive rates, continues to be a compelling option for Indian corporations.

Share Price Reaction

Bank of India’s share price traded higher by 2.83% as of 3:21 PM on April 1, 2025, reflecting positive sentiment around the fundraising initiative and its implications for the bank’s overseas operations.

Conclusion 

Bank of India’s share price bucked the weak market trend and has shown a significant recovery from the lower level of ₹106.26 on the NSE, following this development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

BHEL share price in focus on legal suit against Karnataka Power Corporation

Bharat Heavy Electricals Limited (BHEL), a prominent Indian public sector enterprise, has issued multiple regulatory announcements that has kept the BHEL share price in focus. These disclosures cover legal proceedings, tax assessment, board restructuring, and procedural updates in accordance with SEBI listing norms. Here’s a summary of the key developments:

Legal Suit Against Karnataka Power Corporation

BHEL disclosed that it had filed a legal suit against Karnataka Power Corporation Ltd. (KPCL). The suit, filed before the City Civil and Sessions Court in Bengaluru, seeks recovery of dues linked to an Engineering, Procurement, and Construction (EPC) contract for the Bellary Thermal Power Station.

  • Amount Claimed: ₹542.14 crore

  • Nature of Dispute: Recovery of pending contractual payments from KPCL under the EPC agreement.

Appointment of 2 Independent Directors

BHEL announced the appointment of 2 new Independent Directors to its Board effective from March 29, 2025, for a period of one year or until further orders:

  1. Shri Ashok Aseri

    • Background: Engineering graduate with an MBA in Human Resources.
    • Experience: Over 27 years in public administration and consultancy.
    • Prior Role: Independent Director at STC India Ltd.
    • Known for: Leadership in implementing welfare schemes and a strong focus on socio-economic development.

  2. Shri Aashish Chaturvedi

    • Background: B.Tech. in Textile Technology from IIT Delhi.
    • Experience: Spanning software programming, education, textiles, and industrial real estate.
    • Prior Role: Independent Director at Bridge & Roof Company (India) Ltd.
    • Current Role: Also a columnist and active in agriculture and other diversified sectors.

Both directors have affirmed that they are not debarred from holding the position by any regulatory authority.

GST Demand Raised by Telangana Authorities

On March 29, 2025, BHEL informed the stock exchanges that it had received an order under Section 73 of the CGST Act, 2017, from the Telangana GST authorities. The order pertains to the financial year 2020-21.

  • Demand Details:

    • GST Amount: ₹10.76 crore
    • Interest: ₹7.75 crore
    • Penalty: ₹1.07 crore
    • Total demand: ₹19.58 crore

  • Reason: The demand was raised due to a mismatch of GST credit between BHEL’s claims and the GST portal’s records.

  • Company Response: BHEL has stated its intent to appeal the order before the Commissioner (Appeals). The company further clarified that the notice does not have any material impact on its financials, operations, or other activities.

Share Price Movement of BHEL

At 3:06 PM, BHEL’s share price was trading 2.23% lower at ₹211.61.

Conclusion

Through this series of announcements, BHEL has maintained compliance with SEBI’s disclosure norms, ensuring transparency in legal, financial, and governance-related developments. While the GST order and legal claim may require further resolution, the appointments and procedural updates highlight BHEL’s continued commitment to strong corporate governance practices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Presstonic Engineering Hits 10% Upper Circuit After Securing ₹91.64 Lakh Order from BEML

Presstonic Engineering Limited announced that it had received a purchase order from BEML Limited, Bengaluru. The contract is for the supply of floor seat screws as part of the BMRCL-5 RSDM Project. The order, placed under PO number BR01/RMW/9710009056/0, is valued at ₹91,64,307.29 excluding taxes and adheres to BEML’s technical specifications and conditions.

Presstonic Share Price Hit 10% Upper Circuit

Following this disclosure, Presstonic Engineering’s shares rallied and hit the 10% upper circuit on April 1, 2025. While the order falls within the scope of regular business, the market’s positive response reflected investor optimism towards the company’s recent developments and growing order book.

Another Order Secured from Integral Coach Factory, Chennai

Just days before the BEML order, on March 27, 2025, Presstonic also secured a separate purchase order from the Integral Coach Factory (ICF), Chennai. This order, listed under PO number 07243232100937, is for the supply of stainless steel seats. The net value of this order is ₹98,52,645, again excluding taxes. As with the BEML order, this too is a regular course of business transaction and was duly disclosed as per SEBI norms.

Client Profiles and Strategic Relevance

BEML is a leading public sector undertaking involved in manufacturing for defence and railways, while ICF is one of Indian Railways’ most prominent coach manufacturing units. Presstonic’s engagement with these high-profile clients indicates the company’s consistent participation in large-scale national infrastructure and mobility projects.

About Presstonic Engineering 

Press tonic Engineering manufactures Metro Rail Rolling Stock Products, Metro Rail Signalling Products, Infrastructure Products and supplies to renowned Global and Domestic OEM’s engaged in the Rail and Metro Rail Rolling stock and Signalling equipment’s manufacturing and servicing companies. 

Conclusion

The receipt of this purchase order from BEML Limited marks a significant milestone for Presstonic Engineering Limited, reinforcing its credibility as a trusted supplier for large-scale infrastructure projects. With a contract value exceeding ₹91 lakh, this order not only adds to the company’s order book but also strengthens its association with key government undertakings like BEML. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

How Much Money Can You Send Abroad Under RBI’s Liberalised Remittance Scheme (LRS)

India’s economic growth and increasing global integration have prompted more individuals to look beyond borders—whether it’s for education, investing in international stocks, buying property, or supporting family. However, the ability to send money abroad is governed by the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), which lays down clear rules and limits. Here’s what Indian residents need to know.

Understanding the Liberalised Remittance Scheme (LRS)

The Liberalised Remittance Scheme is a provision by the Reserve Bank of India that allows Indian residents to remit a certain amount of money abroad for permitted transactions. The annual limit under this scheme is $2,50,000 per financial year, applicable to every individual, including minors (with necessary authorisation from a guardian).

This amount can be used for various permissible transactions, such as:

  • Overseas education
  • Investment in foreign equity or debt instruments
  • Maintenance of relatives abroad
  • Medical treatment overseas
  • Travel and tourism
  • Buying immovable property outside India

Timing Matters: The Financial Year Advantage

One of the key aspects of the LRS is that it follows the Indian financial year cycle, ending on March 31 each year. This opens up a strategic opportunity for those wishing to remit larger amounts.

If an individual had remitted $2.5 lakh before March 31, 2025, and repeats the same transaction after the beginning of the next financial year (i.e., from April 1 onwards), a total of $5 lakh can be remitted within a short span of a few days.

To put this in perspective, at an exchange rate of ₹86 per US dollar, this amounts to over ₹4.3 crore remitted abroad in just a matter of days.

Purpose of Remittance: What’s Permitted?

Under LRS, remittances are allowed for:

  • Current account transactions: like travel, education fees, medical expenses, gifts, and maintenance of close relatives.

  • Capital account transactions: such as investment in foreign equity, debt, real estate, or opening foreign bank accounts.

Any remittance that does not fall under the permissible categories is not allowed and may be subject to regulatory scrutiny.

Investing in Global Financial Assets

A notable trend in recent years is the rise in overseas investments by Indians, particularly into equity and debt markets abroad. In fact, data from October 2024 indicated a 78% year-on-year increase in equity and debt investments made under LRS.

For Indian investors eyeing the US stock market, the process generally involves:

  1. Opening an international trading account through an authorised Indian or global brokerage platform.
  2. Completing KYC formalities and LRS-related compliance with the help of the broker.
  3. Converting Indian rupees into US dollars through an authorised dealer.
  4. Funding a foreign bank account linked to the trading platform.
  5. Finally, using the funds to purchase international stocks or ETFs.

Key Considerations for Indian Remitters

While the process has become simpler over the years, here are some important things to note:

  • Ensure compliance with the annual LRS limit and keep records of your remittances.
  • Keep in mind that TCS (Tax Collected at Source) may be applicable on certain types of foreign remittances.
  • If you’ve already made a remittance in the current year, ensure you don’t exceed the $2.5 lakh cap, as penalties may apply.

Conclusion

The Liberalised Remittance Scheme is a powerful tool for Indian residents seeking to explore global opportunities—be it in education, real estate, or equity markets. However, it is crucial to stay informed about the latest guidelines, deadlines, and documentation requirements. With the end of the financial year approaching, those looking to make the most of their remittance limits must plan their transactions wisely and ensure they are in line with RBI’s regulations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Credit Squeeze Hits First-Time Borrowers Hardest: Exploring Safer Lending Routes

Retail credit growth witnessed a noticeable moderation in the quarter ending December 2024. According to a recent report, this slowdown has had a disproportionate impact on new-to-credit (NTC) customers—individuals seeking formal credit for the first time. As lenders reassess their risk appetite, fresh applicants are finding it increasingly difficult to secure approvals.

Lenders Become Selective Amid Rising Defaults

The Reserve Bank of India (RBI) has responded to a rise in defaults, particularly in small-ticket unsecured personal loans, by tightening lending regulations. The central bank increased risk weights on personal loans, credit card exposures, and loans made to non-banking financial companies (NBFCs).

This regulatory intervention comes at a time when the broader economic environment is also showing signs of a slowdown. The dual impact has led to more stringent due diligence processes by lenders, especially when assessing new loan applications.

NTC customers, lacking a proven credit history, are viewed as higher-risk applicants. In a credit-constrained environment, banks and NBFCs are prioritising existing customers with established repayment records over new entrants to the credit system.

Navigating the Credit Crunch—What NTC Borrowers Can Explore

For NTC borrowers in urgent need of credit, online financial marketplaces can provide a ray of hope. These platforms aggregate various loan products, including both unsecured loans from more accommodative lenders and secured loans backed by personal assets such as gold, property, mutual funds, shares, and insurance policies.

Secured loans carry inherently lower risk for lenders, making them more accessible for borrowers with limited or no credit history. With collateral in place, lenders can offer more favourable terms and be more flexible with credit score requirements.

Strengthening Loan Applications Through Existing Relationships

NTC borrowers can also improve their chances by approaching banks with whom they have an existing relationship, particularly salary account holders or long-term banking partners. These institutions already have access to some financial history, which may work in the borrower’s favour.

Applying with a co-signer or guarantor who has an established credit history can also boost approval prospects. Some organisations offer employer-based loan schemes, which NTC borrowers should consider exploring as an alternative credit source.

Secured Credit Cards—A Step Towards Building Credit

Another option worth considering is a secured credit card. These are issued against a fixed deposit, making them accessible even to those with no credit history. Despite the collateral, secured cards function much like standard credit cards and offer similar benefits.

By using the secured card responsibly and paying bills in full by the due date, NTC customers can begin building a positive credit history. Payments on credit cards are reported to credit bureaus, playing a key role in establishing a healthy credit profile over time.

Common Pitfalls New Borrowers Should Avoid

One of the biggest mistakes new borrowers can make is applying indiscriminately without checking whether a lender serves the NTC segment. Submitting applications to institutions that do not consider NTC applicants often leads to rejections, which are then recorded on the applicant’s credit profile.

Additionally, making multiple loan applications in quick succession is viewed negatively by lenders. Such behaviour signals desperation and can further reduce approval chances. NTC applicants should be strategic, focusing on lenders known to work with first-time borrowers and spacing out their applications.

Conclusion

In a tightened credit environment marked by cautious lending and regulatory vigilance, new borrowers face a challenging path. However, with the right approach—such as considering secured loans, leveraging existing banking relationships, and using secured credit cards—NTC customers can begin their credit journey and build a strong financial foundation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

IRDAI Tightens Cybersecurity Norms: 6-Hour Reporting Rule for Insurers and Intermediaries

In a move aimed at bolstering cyber security across the insurance sector, the Insurance Regulatory and Development Authority of India (IRDAI) has issued a directive requiring all insurers and intermediaries to report cyber incidents within 6 hours of detection. This significantly shortens the previous 24-hour reporting window and brings the insurance industry in line with global best practices.

New Compliance Timeline: 6-Hour Cyber Incident Reporting

As per the updated guideline, insurance companies and all licensed intermediaries—such as brokers, corporate agents, insurance marketing firms, and web aggregators—must notify both IRDAI and the Indian Computer Emergency Response Team (CERT-In) within 6 hours of any cyber incident. This accelerated timeframe is intended to ensure quicker containment and response to potential threats.

Enhanced Monitoring and Infrastructure Requirements

The new regulation also mandates continuous vigilance over all Information and Communication Technology (ICT) systems. Insurers are required to maintain and monitor all ICT infrastructure and application logs for a rolling period of 180 days. This move is expected to strengthen audit trails and facilitate more effective forensic investigations in the event of cyber incidents.

Key Requirements Under the New Cybersecurity Framework

IRDAI’s directive outlines several critical measures that insurers and intermediaries must comply with:

  • Time-Synchronised Systems: All ICT systems must align with the official Network Time Protocol (NTP) of India to ensure consistency in event logging and forensic analysis.

  • Cyber Crisis Preparedness: Insurers are now obligated to maintain a Cyber Crisis Management Plan, enabling swift action in case of a cyber attack or data breach.

  • Certified Investigators Only: In the event of a serious cyber issue, investigations must be conducted solely by CERT-In-certified experts to ensure credibility and adherence to standard protocols.

  • Strict Adherence to CERT-In Guidelines: Insurers must fully comply with the cybersecurity guidelines laid out by CERT-In to maintain uniformity in protection and response standards.

  • Avoiding Conflicts of Interest: Companies involved in identifying cyber risks must not be the same as those conducting the investigation. This separation of duties ensures objectivity and transparency.

  • Mandatory Board-Level Oversight: All entities—insurers and intermediaries—must report their compliance status to their respective Boards of Directors and submit the meeting minutes to IRDAI as evidence of adherence.

Strengthening Cyber Resilience in the Insurance Sector

The IRDAI’s updated directive highlights the growing importance of cybersecurity in financial services. With the increasing digitisation of insurance services and sensitive data being handled across digital platforms, this move is a proactive step toward reducing systemic vulnerabilities.

Although these new measures may increase compliance costs and operational overheads, they are expected to enhance the overall cyber resilience of the insurance ecosystem, protecting both insurers and policyholders from potential data breaches and cyber threats.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SEBI Eases Lock-In Norms for REIT Sponsors: Only 15% of Units Now Under 3-Year Lock-In

Real Estate Investment Trusts (REITs) are investment vehicles that pool funds from investors to purchase, manage, and operate income-generating real estate assets. These trusts offer a way for individuals to invest in large-scale commercial properties without actually owning them directly.

Sponsors of REITs play a foundational role by contributing initial assets and often holding a significant portion of the trust’s units. Traditionally, a portion of these units was subject to a lock-in period to ensure long-term commitment and alignment of interests between sponsors and public investors.

Key Regulatory Change by SEBI

In a recent move, the Securities and Exchange Board of India (SEBI) has reduced the proportion of units that REIT sponsors are required to keep under a 3-year lock-in period. Now, only 15% of the preferential units allotted to sponsors must remain locked in for 3 years, down from the earlier 25%.

This regulatory amendment, which came into effect immediately, is aimed at simplifying the compliance process and promoting ease of doing business in the capital markets.

Advisory Committee’s Recommendation

The decision to reduce the lock-in requirement was based on the recommendation of the Hybrid Securities Advisory Committee (HySAC). The committee evaluates and advises SEBI on policy matters related to hybrid securities, including REITs.

By implementing this recommendation, SEBI signals a progressive approach towards balancing regulatory safeguards with operational flexibility for REIT sponsors.

Clarification on Unit Transfers Within Sponsors

Alongside the reduction in the lock-in percentage, SEBI has also clarified the rules regarding the transfer of units between sponsors.

  • Units under lock-in can be transferred from one sponsor to another.

  • Such transfers must occur within the sponsor group entities only.

  • The transferee will be bound by the remainder of the original lock-in period and cannot transfer the units further until the lock-in period expires.

This clarification ensures that while flexibility is granted, the integrity of the lock-in period is maintained to uphold investor confidence.

Conclusion: Regulatory Streamlining in Focus

SEBI’s amendment marks a step forward in streamlining REIT regulations, with a focus on enhancing flexibility for sponsors while preserving necessary checks. Though reduced, the lock-in requirement continues to serve its purpose of ensuring sponsor commitment.

As REITs continue to gain traction among Indian investors, such measures reflect SEBI’s ongoing efforts to foster a robust and business-friendly regulatory environment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Do You Know How Much Land Indian Railways Owns? The Number Will Surprise You!

As of March 31, 2024, Indian Railways holds approximately 4.90 lakh hectares of land across the country. This extensive land bank supports the nation’s railway infrastructure, including tracks, stations, production units, workshops, and terminals. A portion of this land is also licensed or leased out for various non-core activities and development initiatives.

Breakdown of Leased Railway Land

Out of the total land holdings, 8,812 hectares have been leased or licensed for multiple purposes. These include facilities related to passengers, cargo, and commercial development projects.

As of March 31, 2024, Indian Railways holds a total of 4,90,211 hectares of land, out of which 8,812 hectares have been leased or licensed for various purposes. Among the zones, Northeast Frontier Railway possesses the highest landholding at 48,469 hectares, with 1,214 hectares leased. The Northern Railway follows with 46,447 hectares, of which 474 hectares are leased. The South Central Railway holds 40,600 hectares, leasing 237 hectares, while the Western Railway owns 38,275 hectares with 620 hectares leased.

Significant leasing activity is seen in the East Central Railway, which has leased 2,437 hectares out of 33,644 hectares—the highest among all zones.

Land Leased for Various Purposes

Out of the total land, around 8,812 hectares have been leased or licensed for multiple purposes while retaining ownership with Indian Railways. These purposes include:

  • Passenger amenities
  • Cargo and freight facilities
  • Commercial development
  • Licensing to government departments and public utilities
  • Educational institutions like Kendriya Vidyalayas

The leasing of land is conducted under the prevailing policy framework to ensure transparency and strategic utilisation.

Surplus Land Development Through RLDA

The surplus land, which is not immediately required for operational use, is handed over to the Rail Land Development Authority (RLDA). RLDA is responsible for commercially developing these parcels while ensuring that the ownership remains with Indian Railways.

Such development initiatives typically aim to:

  • Monetise underutilised assets
  • Create new sources of revenue for Indian Railways
  • Enhance urban infrastructure and connectivity

This leasing model helps balance operational requirements with commercial potential, ensuring efficient land use.

Government Statement in Parliament

This information was provided by Shri Ashwini Vaishnaw, Union Minister of Railways, Information & Broadcasting, and Electronics & Information Technology, in a written reply to the Rajya Sabha. 

Conclusion

Indian Railways continues to be a key asset-heavy public enterprise in India. Its approach to leasing surplus land while retaining ownership demonstrates a strategic model of infrastructure management. By aligning operational requirements with commercial opportunities, Indian Railways not only serves public transport needs but also contributes to urban and economic development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Make in India Powers Defence Growth: ₹1.27 Lakh Crore Production & ₹21,083 Crore Exports in FY24

India’s defence sector has witnessed a remarkable transformation, recording ₹1.27 lakh crore in production during FY 2023–24. This surge has been powered by the Make in India initiative, which has prioritised domestic manufacturing, innovation, and self-reliance. Once heavily dependent on foreign imports, India is now increasingly turning to homegrown technologies and capabilities to meet its strategic and security needs.

This paradigm shift not only strengthens national security but also bolsters economic development by creating a thriving ecosystem for manufacturing and job creation. The leap in the defence budget from ₹2.53 lakh crore in FY 2013–14 to a projected ₹6.81 lakh crore in FY 2025–26 further underlines this commitment.

Key Defence Acquisitions and Approvals

Recent acquisitions and policy decisions highlight India’s focus on strengthening its defence arsenal through indigenous procurement:

Light Combat Helicopters (LCH) – Prachand

The Ministry of Defence has signed two contracts with Hindustan Aeronautics Limited (HAL) for 156 LCH Prachand helicopters worth ₹62,700 crore. These high-altitude helicopters—designed for operations above 5,000 metres—will serve both the Indian Air Force and the Indian Army. Notably, the LCH has over 65% indigenous content and involves collaboration with 250 domestic firms, mostly MSMEs, creating over 8,500 jobs.

Wet Leasing of Refuelling Aircraft

In a first, the Indian Air Force has entered a wet lease agreement with Metrea Management for a KC-135 Flight Refuelling Aircraft. This will aid in training pilots from the IAF and Indian Navy in air-to-air refuelling operations, with delivery expected within six months.

Advanced Towed Artillery Gun System (ATAGS)

The Cabinet Committee on Security has approved the procurement of 307 ATAGS and 327 gun towing vehicles under the IDDM category at a cost of ₹7,000 crore. Developed by DRDO in partnership with Bharat Forge and Tata Advanced Systems, ATAGS offers advanced targeting, automated loading, and a firing range exceeding 40 km.

Record Defence Contracts in FY 2024–25

In FY 2024–25, the Ministry of Defence signed an unprecedented 193 contracts, amounting to ₹2,09,050 crore—nearly double the previous record. Impressively, 177 of these contracts (92%) were awarded to domestic firms, accounting for ₹1,68,922 crore or 81% of the total contract value. This reflects a strong push towards indigenous procurement and the growth of local industries.

Surge in Domestic Defence Manufacturing

The value of India’s indigenous defence production has grown by 174% over the past decade—from ₹46,429 crore in FY 2014–15 to ₹1,27,434 crore in FY 2023–24. This milestone is attributed to comprehensive government efforts promoting self-reliance and innovation.

Noteworthy platforms developed in India include:

  • Land Systems: Dhanush Artillery Gun, ATAGS, Arjun Main Battle Tank, Light Specialist Vehicles

  • Air Systems: LCA Tejas, ALH Dhruv, LUH, Akash Missile System

  • Naval Platforms: Indigenous aircraft carriers, destroyers, submarines, and offshore patrol vessels

  • Surveillance & Communication: Weapon Locating Radar, 3D Tactical Control Radar, Software Defined Radios

Structural Shifts in the Defence Ecosystem

India’s defence manufacturing ecosystem has evolved rapidly:

  • 65% of defence equipment is now produced domestically, a reversal from earlier reliance on imports.

  • A robust industrial base includes 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed firms, and approximately 16,000 MSMEs.

  • The private sector contributes 21% of the total defence output, promoting competitiveness and innovation.

  • India has set an ambitious ₹3 lakh crore defence production target by 2029, signalling its aspiration to become a leading global supplier.

India’s Defence Exports on the Rise

India’s push for defence exports has yielded impressive results. From ₹686 crore in FY 2013–14, exports have skyrocketed to ₹21,083 crore in FY 2023–24—a 30-fold increase over a decade. This demonstrates the growing confidence of international buyers in Indian-made defence systems and the country’s potential to be a significant player in the global arms market.

Conclusion

The Make in India initiative has successfully transformed India’s defence sector, enhancing self-sufficiency while opening up new avenues for global trade. With rising production figures, record-breaking contracts, and expanding exports, India is well on its way to becoming a defence manufacturing powerhouse.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.