India has set a target turnover of Rs. 1.75 Lakh Crore ($25 Billion) in defense manufacturing along with the export of 35,000 Crore ($5 billion) in aerospace by the year 2025.
The Indian government is looking at the defense sector as a potential driver to boost all over the economy. The Ministry of Defence has formulated a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020) which was announced on Sunday.
Defence Minister of India, Rajnath Singh tweeted to announce the draft. He said, “In order to provide impetus self-reliance in Defence manufacturing and to position India amongst the leading countries of the world in Defence and Aerospace sectors a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020) has been formulated.”
The DPEPP 2020 is envisaged as an overarching guiding document of MoD to provide a focused, structured, and significant thrust to defense production capabilities of the country for self-reliance and exports.
The policy has focused on different areas which includes Procurement Reforms and Indigenization & Support to MSMEs/Startups. One of the major strategies is to promote exports which tends to boost the economy of the nation.
India continues to remain one of the most lucrative markets for global defense major. Thus aims to focus on quality assurance and testing infrastructure with this policy.
India seeks self-reliance and understands the importance of boosting local participation in line with the government’s ‘Make in India’ initiative. The policy will promote the export of defense products and help India to become part of the global defense value chain.
This policy focuses on developing a dynamic, robust, and competitive Defence industry, including the Aerospace and Naval Shipbuilding industry to cater to the needs of Armed forces with quality products. India aims to create an environment that encourages R&D rewards innovation creates Indian IP ownership and promotes a robust and self-reliant defense industry.
The share of domestic procurement in overall defense procurement is about 60%. To enhance procurement from the domestic industry, it is incumbent that procurement is doubled from the current ₹70,000 crores to ₹1,40,000 crore by 2025,” the draft document states. According to the news agency PTI, New Delhi is expected to spend USD 130 billion in capital procurement over the next five years.
Although the draft policy is open for public consultation and the Ministry of Defence is seeking inputs and comments from the stakeholders. According to the MoD, The policy will be publicized based on the comments. Inputs and comments on the draft policy can be sent up to August 17.