Govt sets target for Rs 1.75 lakh crore turnover in aerospace, defence goods, services

The government has set the target to achieve a turnover of Rs 1,75,000 crore in aerospace and defence goods and services within the next five years, including export of Rs 35,000 crore, according to a new policy draft made public on Monday.

The Ministry of Defence (MoD) on Monday made public the draft of the new Defence Production and Export Promotion Policy (DPEPP) 2020, seeking suggestions from the stakeholders.

“The DPEPP 2020 is envisaged as MoD’s overarching guiding document to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports,” Defence Minister Rajnath Singh’s office tweeted.

The new policy is aimed at providing impetus to self-reliance in defence manufacturing, bringing down dependence on imports in the sector and taking forward the “Make in India” initiatives through domestic design and development, in sync with the “Atmanirbhar Bharat” campaign launched by the Prime Minister Narendra Modi.

The MoD officials stated that it was drafted keeping in mind the need to promote export of defence products and make the country part of the global defence value chains.

The Department of Defence Production of the MoD has laid out a target to achieve a turnover of Rs 1,75,000 crores in Aerospace and Defence Goods and Services by 2025. “The share of domestic procurement in overall defence procurement is about 60 per cent. In order to enhance procurement from domestic industry, it is incumbent that procurement is doubled from the current Rs 70,000 crore to Rs 1,40,000 crore by 2025,” the MoD noted in the draft of the policy.

It stressed on developing a dynamic, robust and competitive defence industry, including in the area of aerospace and naval shipbuilding to cater to the needs of armed forces with quality products. It also seeks to create an environment that encourages research and development, rewards innovation, ensures Indian Intellectual Property ownership and promotes a robust and self-reliant defence industry, the MoD stated in a press-release.

The draft policy stressed on indigenization and support to Micro, Small and Medium Enterprises and Start-Ups, optimizing resource allocation, investment promotion, encouraging Foreign Direct Investment and ensuring Ease of Doing Business, apart from focussing on innovation and research and development, quality assurance and building testing infrastructure and export promotion. It also emphasised on revitalizing the defence PSUs and the Ordnance Factory Board.