India To Be ‘Self-Reliant’ In The Defence Industry
India to be ‘self-reliant’ in the defence industry, eyeing business of 1.75 lakh crore in defence manufacturing. To make India among the world’s leading countries in the defense sector, aerospace and naval shipbuilding sector, the Ministry of Defense made several announcements under the ‘Self-reliant India’ package.
The government has set a target of 1.75 lakh crore rupees by 2025 from defense manufacturing in the country. The government believes that due to the Covid-19 in this region, there is a need to revive the entire economy, which is facing many challenges. The Defense Ministry has drafted the ‘Defense Production and Export Promotion Policy 2020’ for defense manufacturing in the country.
Target set for the next five
According to the newly set target, to achieve a turnover of Rs. 1,75,000 crores including export of Rs. 35 thousand crores in aerospace and defense goods and services by 2025. Apart from this, the needs of the armed forces with quality products To accomplish this, it has also been targeted to develop a dynamic, strong, and competitive defense industry including aerospace and naval shipbuilding industry.
In the new draft, the government has emphasized on the ‘Make in India’ initiative through domestic design and development rather than importing weapons from other countries. The draft states that domestic With the increase in exports to other countries due to lack of defense products, India will be able to compete in arms prices globally.
Officials said the policy aims to develop a dynamic, growing, and competitive defense industry. It also includes the manufacture of fighter jets to make warships capable of meeting the needs of the country’s armed forces. Finance Minister Nirmala Sitharaman had announced several reforms related to the defense sector in May.
It also included a separate budgetary allocation for the purchase of indigenously manufactured military products. In addition, the limit of foreign direct investment through the automatic clearance route in the defense sector has been increased from 49 percent to seventy-four percent.
India – among the three largest defense product importers.
Sitharaman had also announced to make a restricted list of such weapons on an annual basis, whose imports would not be allowed. India is the preferred market for global defense products companies because, for the last eight years, India remains among the three largest defense product importers in the world.
In the next five years, the Indian defense forces are estimated to spend about $ 130 billion on military products. The draft Defense Production and Export Promotion Policy also introduces a framework for designing and developing products domestically, reducing dependence on imports, and advancing the Make in India initiative.
