The Indian government has been focusing on strengthening its defence capabilities not just through imports but also by boosting its indigenous defence industry. In line with this objective, the Defence Ministry has proposed a new policy named the Defence Production and Export Promotion Policy, 2020 (DPEPP 2020). This policy is aimed at enhancing self-reliance in defence production and turning India into a global defence manufacturing hub. The draft version of this policy was made public in August of the previous year, inviting feedback from stakeholders. Once finalized, DPEPP 2020 will serve as a comprehensive framework for the defence ministry to augment domestic defence manufacturing and increase exports.
Objectives of DPEPP 2020
One of the primary goals of the Defence Production and Export Promotion Policy 2020 is to achieve a turnover of Rs.1,75,000 crore (approximately $24 billion) in aerospace and defence goods and services by the year 2025. This ambitious target is set to include an export component of Rs.35,000 crore (roughly $5 billion). The policy aims to bring India amongst the leading countries of the world in defence and aerospace sectors, with active participation in exports and international engagements.
Focus on Self-Reliance
Self-reliance is a critical aspect of the proposed policy. It emphasizes reducing dependence on imports and creating a robust domestic defence industry that can cater to the needs of the armed forces. The policy is expected to identify and address any gaps in the existing defence manufacturing ecosystem, thus encouraging the development of new technologies and capabilities within the country.
Boosting Exports
Increasing exports is another significant aspect of DPEPP 2020. The policy outlines steps to improve the competitiveness of Indian defence products in the global market. This includes measures to promote the export of indigenously manufactured defence equipment, thereby contributing to the global supply chain and enhancing the country’s stature as a defence exporter.
Promoting Domestic Manufacturing
To achieve the targets laid out, the policy proposes several initiatives to promote domestic manufacturing. These include optimizing resource allocation, incentivizing innovation, investing in research & development, and enhancing the ease of doing business. The policy also seeks to create an environment that supports startups and encourages private sector participation in defence production.
Role of Public and Private Sectors
The policy acknowledges the importance of both the public and private sectors in achieving the outlined objectives. It envisages a collaborative approach, where public sector undertakings (PSUs) and the private industry work together to enhance the country’s defence technological base and build a supply chain that is competitive and efficient.
Technology and Innovation
Technology advancement and innovation are key to the success of DPEPP 2020. The policy plans to set up a Defence Technology Fund to support innovation and technology development in the defence sector. Partnerships with academia and industry are also encouraged to foster an ecosystem conducive to cutting-edge research and development.
Quality Assurance and Testing Infrastructure
Quality assurance is paramount in defence production. The policy aims to establish a robust quality assurance and testing infrastructure across the country. This will ensure that the products manufactured meet the highest standards required for defence equipment and are suitable for the intended operational use.
Implementation Strategy
For effective implementation, the policy proposes a clear strategy that includes setting up a coordination mechanism between different ministries and departments, establishing a Defence Production Council, and creating a clear roadmap with short-term and long-term goals. Monitoring and review mechanisms are also suggested to assess progress and make necessary adjustments.
In conclusion, the Defence Production and Export Promotion Policy, 2020 is a strategic initiative that holds the potential to transform India’s defence sector significantly. By focusing on self-reliance, boosting exports, and promoting domestic manufacturing, the policy aims to position India as a major player in the global defence industry.
