India today announced a new Defence Production and Export Promotion Policy with an objective of achieving an export target of R 35,000 crore in Aerospace and Defence goods and services by 2025.
As part of the ‘Atmanirbhar Bharat Package,’ the Centre also announced steps to give impetus to self-reliance in defence manufacturing with an aim to achieve a turnover of Rs 1,75,000 crore in the sector in the next five years
The draft Defence Production and Export Promotion Policy 2020 envisages steps to develop a dynamic, robust and competitive Defence industry.
In implementing such framework and to position India amongst the leading countries of the world in defence and aerospace sectors, the Ministry of Defence (MoD) has formuated guidelines to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports.
The policy has laid out following goals and objectives:
– To achieve a turnover of Rs 1,75,000 Crores (US$ 25Bn) including export of Rs 35,000 Crore (US$ 5 Billion) in Aerospace and Defence goods and services by 2025.
– To develop a dynamic, robust and competitive Defence industry, including Aerospace and Naval Shipbuilding industry to cater to the needs of Armed forces with quality products.
– To reduce dependence on imports and take forward “Make in India” initiatives through domestic design and development.
– To promote export of defence products and become part of the global defence value chains.
– To create an environment that encourages R&D, rewards innovation, creates Indian IP ownership and promotes a robust and self-reliant defence industry.
The Policy brings out multiple strategies under the following focus areas:
– Procurement Reforms
– Indigenization & Support to MSMEs/Startups
– Optimize Resource Allocation
– Investment Promotion, FDI & Ease of Doing Business
– Innovation and R&D
– DPSUs and OFB
– Quality Assurance & Testing Infrastructure
– Export Promotion
