Ajay Banerjee

Tribune News Service

New Delhi, March 23

The Ministry of Defence (MoD) has proposed a major tweak to the defence-manufacturing policy, including higher Foreign Direct Investment (FDI) limits, a multi-billion dollar target for domestic production of military equipment by 2025, self-reliance and exports of critical technology.The Department of Defence Production under the MoD has put out a draft of the defence production policy (DPP-2018). It has sought suggestions by March 30. The final policy will be released after that.The new DPP draft says “the policy aims to achieve a turnover of Rs 1,70,000 crore ($26 billion approx) in defence goods and services by 2025. It may be noted that the domestic production for 2016-17 was Rs 55, 894 crore, largely in the public sector.The ministry says this will need an additional investment of around Rs 70,000 crore and aims to “achieve export of Rs 35,000 crore by 2025. The DDP identifies 13 sectors in which self-reliance needs to be achieved latest by 2025.On the list are fighter aircraft, medium lift and utility helicopters, warships, land combat vehicles, autonomous weapon systems, missile systems, gun systems, small arms, ammunition and explosives, surveillance systems, electronic warfare systems, communication systems and night fighting enablers.Off these, India is already producing Tejas jets, Dhruv helicopters, missiles and has had success in gun systems. The target will be achieved by faster absorption of technology, suggest the DPP.It says the FDI regime in defence will be further liberalised and “FDI up to 74 per cent will be allowed in niche technology areas under the automatic route”. Cyber space has opened the fourth domain of warfare, beyond Army, Navy and Air force. India, with its leadership in the IT domain, needs to use this technology to its advantage, suggests the DPP.

DPP draft unveiled

• The Department of Defence Production under the Ministry of Defence has put out a draft of the defence production policy (DPP-2018). It has sought suggestions by March 30
• The new DPP draft says “the policy aims to achieve a turnover of Rs 1,70,000 crore ($26 billion approx) in defence goods and services by 2025
• The DDP identifies 13sectors in which self-reliance needs to be achieved latest by 2025