The upcoming 12th edition of DefExpo that is scheduled to take place in Gandhinagar, Gujarat in March 2022 has been in the news. This event is a significant biennial occasion organised by the Ministry of Defence. It is known for showcasing systems related to the land, naval, air and homeland security. With the vision of achieving ‘Atmanirbharta’ in defence and to reach a $5bn defence exports target by 2024, this year’s DefExpo carries a lot of expectations. The previous, 11th edition of DefExpo occurred in Lucknow, Uttar Pradesh in 2020.
About DefExpo
DefExpo is a premier event held every two years under the aegis of the Ministry of Defence. It provides a platform for manufacturers, buyers, sellers, and service providers from various segments of the defence industry to showcase their capabilities. Apart from the display of land, naval, and air systems, this event also includes homeland security systems.
The ultimate goal for DefExpo 2022 is to further the vision of self-reliance in defence, otherwise known as Atmanirbharta. This vision includes a plan to hit a $5 billion defence export target by 2024.
Defence Sector Reforms Under Atmanirbhar Bharat Abhiyan
The government’s self-reliance initiative, Atmanirbhar Bharat Abhiyan, has spurred several reforms in the defense sector. These changes aim to overhaul and improve India’s defence infrastructure and capabilities.
Revision of FDI Limit
As part of these reforms, the Foreign Direct Investment (FDI) limit in defence manufacturing under the automatic route has been raised from 49% to 74%. This revision aims to encourage foreign investors to invest more in the Indian defence sector and spur growth in this industry.
Project Management Unit(PMU)
The government is planning to expedite defence procurement and decision-making processes by setting up a Project Management Unit (PMU). This unit will be responsible for managing contracts, ensuring proper execution and timely completion of defence projects.
Reduction in Defence Import Bill
In an effort to reduce the defence import bill, the government plans to ban imports of certain weapons and platforms. These items can now only be purchased from the domestic market. This step will not only boost local manufacturing but also help save foreign exchange.
Separate Budget Provision for Domestic Capital Procurement
As part of the Atmanirbhar Bharat Abhiyan, a separate budget provision has been made for domestic capital procurement. This provision is expected to motivate domestic suppliers and manufacturers to contribute more towards the country’s defence requirements.
Corporatisation of the Ordnance Factory Board
The government is also planning to corporatise the Ordnance Factory Board. Some units may undergo public listing to increase efficiency and improve the interface between the manufacturers, designers, and end-users. This move is expected to bring significant improvements in the operations of the board.