Thursday 01 October 2020, 01:21 AM
Draft defence policy aims to double India's defence production in 5 years
By Jyoti Verma | Bharat Defence Kavach | Publish Date: 8/4/2020 11:50:54 AM
Draft defence policy aims to double India's defence production in 5 years
Defence Minister Rajnath Singh with BRO (Border Road Organisation) DG Lt Gen Harpal Singh and other senior officials.

New Delhi: The government has released a draft Defence Production and Export Promotion Policy (DPEPP 2020), with the stated objective of achieving a turnover of Rs 1,75,000 crores ($ 25 billion), including export of Rs 35,000 crore ($5 billion) in aerospace and defence goods and services by 2025.

Defence Minister Rajnath Singh announced the draft policy through a tweet on Monday. "In order to provide impetus to 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," he said.

In implementing such framework and to position India amongst the leading countries of the world in defence and aerospace sectors, Ministry of Defence (MoD) has formulated a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020).

The DPEPP 2020 is envisaged as overarching guiding document of MoD to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports.

The policy proposes 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. One can not deny the fact that India desperately needs to bolster its fledgling DIB by getting the private sector to jump into defence production in a major way.

The draft policy also seeks to reduce dependence on imports and take forward "Make in India" initiatives through domestic design and development. The policy's aim is to promote export of defence products and become part of the global defence value chains.

The officials said the policy paper made several key recommendations to boost defence manufacturing so that the sector compliments the government’s aim make the country’s economy a $5 trillion one by 2024.

It emphasizes creation of 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 focus areas of procurement reforms, indigenization and support to MSMEs/startups, optimize resource allocation, investment promotion, FDI and Ease of Doing business, innovation and R&D, DPSUs and OFB, quality assurance and testing infrastructure and export promotion.

The vision as stated in the policy is "To make India amongst the leading countries of the world in Defence sector, including Aerospace and Naval Shipbuilding sectors, from design to production, with active participation of public and private sector and thus fulfilling the twin objectives of self-reliance and exports".

The size of India’s defence industry is estimated to be Rs 80,000 crore in the draft policy. “While the contribution of the public sector is estimated to be Rs 63,000 crore, the share of private sector has steadily grown to Rs 17,000 crore over the years,” states the draft DPEPP 2020.

The new policy backtracks significantly from the draft DPrP 2018, which had stipulated 13 technology realms where India would achieve self-reliance by 2025, including in building fighter aircraft, helicopters, warships, tanks, missile systems, gun systems, small arms, and ammunition.

According to estimates, the Indian armed forces are projected to spend around $130 billion in capital procurement in the next five years.

The draft Defence Production and Export Promotion Policy (DPEPP) also prescribed a framework to reduce dependence on imports and take forward the “Make in India” initiatives through domestic design and development.

It also suggested steps to promote export of defence products to make India become part of the global defence supply chain.
 

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Defence Production and Export Promotion Policy,DPEPP 2020,Draft defence policy,draft DPEPP 2020

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