Focus on Industrial Base, Greater Private Sector Involvement -

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[b]Focus on Industrial Base, Greater Private Sector Involvement - Draft Defence Production Policy[/b]


Press Trust of India has released excerpts of the draft Defence Production Policy (DPP) that focuses on building a robust industrial base for self-reliance in meeting the needs of its armed forces.

As part of the DPP, to be approved and released soon, the government will give preference to indigenous design, development and manufacture of defence equipment. It will rely on foreign sources to buy arms for the Army, Navy and Air Force only in case of critical technologies in which indigenous industries do not have capabilities and if they cannot meet the time lines for delivery.

Excerpts from the draft:
"Government will endeavor to build a robust indigenous defence industrial base by pro-actively encouraging larger involvement of the Indian private sector in design, development and manufacture of defence equipment. (It will) progressively identify and address any issue which impacts or has the potential of impacting the competitiveness of Indian defence industry in comparison to foreign companies."

"Government has decided that preference will be given to indigenous design, development and manufacture of defence equipment. Therefore, wherever the required arms, ammunition and equipment are possible to be made by the Indian industry within the required time frame, the procurement will be made from indigenous sources."


Indian defence production was an exclusive domain of the public sector undertakings and the Ordnance Factories until 2000 when the government decided to allow 100 per cent private participation in the sector

Defence Ministry has issued about 150 licences and letters of intent to the private sector. 70 per cent armament requirement of Indian armed forces is met through purchases from foreign sources.