India is expected to be a $10-trillion economy in the next 12-13 years and its defence spend will reflect this expansion, creating huge demand for indigenously built modern weapon systems. The draft Defence Production Policy (DPP) 2018 highlights major categories of systems—fighter aircraft, helicopters, warships, land & combat vehicles, etc. Such critical platforms clubbed with bringing in high-technology in the country offer huge opportunities for both global and Indian OEMs.
Policy goals include achieving a turnover of $26 billion and additional investments of $10 billion by 2025. In line with its stated objectives, over the last four years, the ministry of defence initiated many policy and procedure reforms.
DPP 2016 has many enabling features to promote the role of Indian industry:
Higher preference for Make-in-India categories;
Simplified ‘Make’ procedure with higher level of funding (90% against 80% earlier); and
Strategic partnership model to facilitate participation of Indian private industry, through technology collaboration with foreign OEMs, in select segments—fighter aircraft, helicopters, submarines and armoured fighting vehicles.
Besides rationalising items requiring direct industrial licences (DIL), the government enhanced FDI limit in defence (from 26% to 49% through automatic route, and up to 100% on case-by-case basis through government route where access to modern technology may be involved). Revised offset guidelines have been introduced to simplify processes.
Ahead of the Aero India 2019, the Defence Acquisition Council (DAC) has approved significant changes in DPP, in what is called the third phase of reforms. These are focused on making procurement procedures industry-friendly and simplifying certain aspects, to make it smoother and faster, to meet the operational requirements of the armed forces.
21/02/19 Baba Kalyani/Financial Express
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Policy goals include achieving a turnover of $26 billion and additional investments of $10 billion by 2025. In line with its stated objectives, over the last four years, the ministry of defence initiated many policy and procedure reforms.
DPP 2016 has many enabling features to promote the role of Indian industry:
Higher preference for Make-in-India categories;
Simplified ‘Make’ procedure with higher level of funding (90% against 80% earlier); and
Strategic partnership model to facilitate participation of Indian private industry, through technology collaboration with foreign OEMs, in select segments—fighter aircraft, helicopters, submarines and armoured fighting vehicles.
Besides rationalising items requiring direct industrial licences (DIL), the government enhanced FDI limit in defence (from 26% to 49% through automatic route, and up to 100% on case-by-case basis through government route where access to modern technology may be involved). Revised offset guidelines have been introduced to simplify processes.
Ahead of the Aero India 2019, the Defence Acquisition Council (DAC) has approved significant changes in DPP, in what is called the third phase of reforms. These are focused on making procurement procedures industry-friendly and simplifying certain aspects, to make it smoother and faster, to meet the operational requirements of the armed forces.
21/02/19 Baba Kalyani/Financial Express
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