Will the Defence Production Policy 2018 help India switch from being the No. 1 weapons importer to an exporter?

- Advertisement -
- Advertisement -

The draft Defence Production Policy 2018, released in March, visualises India as one of the top five countries in the aerospace and defence sectors in the coming years, with defence goods and services accounting for a turnover of ₹ 1.7 trillion by 2025.

By Baishakhi Dutta

Prime Minister Narendra Modi’s administration aims to raise the current ceiling on foreign direct investments (FDI) in the defence sector from 49 per cent to 74 per cent, according to a draft of the Defence Production Policy 2018 released by the Ministry of Defence. As of now, anything over 49 per cent is allowed on a case-to-case basis.

- Advertisement -

According to the draft policy, achieving the targeted FDI would require an investment of ` 700 billion and could create up to three million jobs. Another goal is to clock exports worth ` 350 billion by 2025. The defence ministry has sought comments and suggestions about the policy from experts and stakeholders. The draft policy comes at a time when India has been ranked the world’s largest importer of weapons for the tenth straight year by the well-known think tank, Stockholm International Peace Research Institute.

The government has identified 12 military platforms and weapons systems for production in India to achieve the aim of ‘self-reliance’. These include 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 and night fighting enablers, among others.

According to the draft policy, the government not only aims to make India self-reliant in defence production, but also fulfil the defence requirements of other friendly countries. The policy states that the licensing process for defence industries will be liberalised, and the list of items requiring licences will be reviewed and then pruned.

The policy further states that ‘no-objection certificates’ and comments from all relevant agencies must necessarily be received within two weeks of the filing of the applications for licensing by the companies. It also states that the tax regime will be rationalised to make domestic manufacturing attractive by ensuring that there is no tax inversion. According to the draft, taxes on the import of capital goods and services, inputs and components used in defence production will be rationalised.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

5G RedCap To Transform IoT Module Shipments

0
Over 60% of IoT module shipments will originate from the Asian & Oceania region. Automotive sector is expected to be a significant driver. The...
XR Headset Quest 3, Meta

Global XR Headset Shipments See A Major Decline, Sony Rises

0
Sony grabbed a market share of 24% in 2023 up from 1% in 2022. Bulky form factor, and lag, hinder adoption by serious...

Indian PC Market Grows 4% In Q4 2023, Local Manufacturing Efforts Ramp Up

0
IT procurement by enterprises and SMBs, delayed in the first half of 2023, is starting to take place and is expected to accelerate...

Buzz

Tenstorrent- RISC V cores

MosChip Collaborates With Tenstorrent For Advanced RISC-V Cores

0
Tenstorrent has selected Moschip due to their tape out expertise in design services. India’s MosChip Technologies has announced partnership with computing company Tenstorrent and to...

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Important Sectors

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Subsidy Cuts Push E2W Makers Towards Budget Models

0
Electric two-wheeler manufacturers face reduced government subsidies and growing competition from established petrol vehicle brands in the upcoming fiscal year. These challenges compel them...

Nissan To Invest In Renault’s Ampere For EV Roadmap

0
The alliance aims to introduce both five-seater and seven-seater models for each brand in India. Japan's Nissan Motor has committed to investing in Renault's electric...

TPEM And HPCL Team Up To Enhance EV Charging Infrastructure

0
The collaboration seeks to enhance the experience of electric vehicle owners in India and promote greater adoption of electric vehicles among the population. Tata Passenger...

Manufacturing

JLR To Hire 250 Electrical Technicians For Future EVs

0
These new roles, part of a £15 billion investment, are in addition to 300 positions created last year by the British car maker. Jaguar Land...

Altmin India Partners With WMG To Advance Battery Tech

0
Altmin and WMG will collaborate to strengthen their global battery materials supply chain position by optimizing cathode materials and developing diverse cell designs across...

EVs To Cost Less Than Gas Vehicles by 2027, Says Gartner

0
Gartner predicts a faster decline in production costs compared to battery costs, which represent the most significant expense in an electric vehicle, accounting for...
MG

MG Motor To Set Up Battery Assembly Unit At Halol Facility

0
The company plans to investigate battery cell production in collaboration with external partners. Automaker MG Motor India is actively exploring the possibility of assembling and...

Servotech Boosts India’s EV Charging Infrastructure With Manufacturing Facility

0
The new facility is poised to start with an annual production capacity of 24,000 power modules and plan to scale up to 2.4 lakh...