Government Releases Draft Policy on Defence Production (Download PDF)

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The Defence Ministry has come out with a draft policy which envisages achieving a turnover of Rs. 1, 70, 000 crore in military goods and services by 2025 for promoting the domestic defence industry.

Image of Government Releases Draft Policy on Defence Production

Image of Government Releases Draft Policy on Defence Production

Image of Government Releases Draft Policy on Defence Production

What is the Policy?

  • The policy says the aim is to make India one of the top five manufacturers of defence platforms with active participation of public and private sectors.

  • The policy lists as a major aim for achieving export of Rs. 35, 000 crore in military equipment and services by 2025 by promoting the domestic defence industry.

  • The defence ministry has sought comments and suggestions of experts and stakeholders on the policy.

  • The policy would involve additional investment of nearly Rs. 70, 000 crore, creating employment for nearly 2 to 3 million people.

  • According to the policy, the government aims to make India self-reliant in defence production as well as fulfil demand of other friendly countries.

  • The policy says the licensing process for defence industries will be liberalized and the list of items requiring licenses will be reviewed and pruned.

  • Except a small negative list, other items to be taken out of purview of licensing. All applications for licenses to be disposed off in 30 days.

  • It says no-objection certificates and comments from all agencies must necessarily be received within two weeks of filing of the applications by the companies.

  • The policy says the tax regime will be rationalized to make domestic manufacturing attractive by ensuring that there is no tax inversion.

  • Taxes on import of capital goods and services, inputs and components used in defence production will to be rationalized.

Key Facts

At present, India is one of the world’s largest importer of military platforms and weapons.

The government identified 12 military platforms and weapons systems for production in India to achieve the aim of “self-reliance”. They are

  • Fighter aircraft

  • Medium lift and utility helicopters

  • Warships

  • Land combat vehicles

  • Missile systems

  • Gun systems

  • Small arms, ammunition and explosives,

  • Surveillance systems

  • Electronic warfare (EW) systems

  • Night fighting enablers etc.

- Published/Last Modified on: August 7, 2018

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