Underlining the need to reduce dependency on arms imports, Defence Minister Rajnath Sing said several steps have been taken under the “Make in India” initiative to make the country a major Defence manufacturing hub and net Defence exporter.

Singh was addressing the second annual session of Society of Indian Defence Manufacturers at New Delhi on 17th September.

Government of India being committed to work towards achieving a USD 26 billion Defence industry by 2025, the Minister asserted that the Defence sector has been identified as one of the most prominent sectors under “Make in India” Initiative to realize USD 5 Trillion Economy by 2024.

Following key points highlights Defence Ministers address:

• the defense production policy reflects the resolve of the government to achieve USD 26 billion Defence industry with an anticipated investment of USD 10 Billion in aerospace and Defence goods and services by 2025.

• employment to be generated is about 2-3 million people.

• simplification of procedures for Defence Exports has resulted in export of Rs 10,745 Crore in 2018-19

• a target of USD 5 Billion for exports has been set till 2024.

• there are nine Defence Public Sector Units, 41 ordinance factories, 50 dedicated R & D labs about 70 license holding private companies with a workforce of 1.7 lakhs people.

• government has simplified industry licensing process, increased the FDI cap and taken necessary steps to promote Defence exports.

• defence offset policy has been streamlined and government owned trial and testing facility has been provided to private sector.

• two Defence industrial corridors have been launched in Tamil Nadu and Uttar Pradesh.

• at present over 8000 MSMEs are engaged in Defence production. Efforts are on to double this figure to 16,000.

• under the “Make” procedure, till date 40 industry development proposals have been given in principle approval.

• 8 projects would have an estimated value of Rs 2,000 Crore in next five years.
• As against 215 Defence licenses issued till 2014, the number of Defence licenses issued went up to 440 by March 2019.

A new category ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured’)} was introduced and most of the capital procurement approvals by the Defence Acquisition Council were given under indigenous development and production.

• strategic partnership model has been introduced in Defence Procurement Procedure to ensure that private sector manufactures big-ticket items like Fighter Aircraft, Helicopters, Submarines and armored vehicles.

• promote Artificial Intelligence in national security to make India a significant power in Defence AI. It has been planned to develop 25 Defence Specific AI products by 2024.

• new Transfer of Technology (ToT) policy is under process that will pave the path of transferring DRDO developed technologies to the industry.

• till now over 900 ToT licencing agreements have been signed with the industry which is a major step towards making Defence manufacture sector self-reliant.

Defence Minister, Rajnath Singh assured the Defence Manufactures of all possible support from the Government. He said that the government is open to new ideas and is committed to fully harness the energies, entrepreneurship spirit and enterprise of private sector in the defence sector.