Economics Current

Defence Production and Export Promotion Policy, 2020

The Ministry of Defence on August 3, 2020 put out a draft ‘Defence Production and Export Promotion Policy (DPEPP) 2020 envisaged as an overarching guiding document of MoD to provide a focused, structured, and significant thrust to defence production capabilities of the country for self-reliance and exports. The draft aims to achieve a manufacturing turnover of $25 bn, including exports of $5 bn in aerospace and defence goods and services by 2025. DPEPP has been drafted along the lines of the government’s call for an Aatmanirbhar Bharat, whereby the official position on the draft states that self-reliance in defence has been the cornerstone of India’s defence production policy.
The goals of DPEPP are: (Source: 
·First is to achieve a turnover of Rs. 1 lakh 75 thousand crore including an export of Rs. 35 thousand crore in the Aerospace and Defence goods and services by the year 2025. 
·Developing a dynamic, robust and competitive defence industry, including aerospace and naval shipbuilding industry to cater to the needs of Armed Forces with quality products.
·Emphasis on reducing dependence on imports and taking forward the ‘Make in India’ initiatives through domestic designs.
·Efforts will be made to create an environment that encourages Research and Development, rewards innovation, creates Indian IP ownership and promotes a robust and self-reliant defence industry.
These goals are to be fulfilled through following strategies:
·A Project Management Unit (PMU) will be set up for the development and production of technologies involved, life cycle costs and maintenance requirements of platforms, equipment and weapon systems.
·Long Term Integrated Perspective Plan (LTIPP) and a Technology Assessment Cell (TAC) would be created.
·The indigenisation policy aims to create a system to indigenise the imported components and sub-assemblies for defence equipment and platforms manufactured in India. 
·The share of domestic procurement in overall Defence procurement is about 60%.
·Mission Raksha Gyan Shakti was launched to promote a greater culture of innovation and technology development and file patents in Defence Public Sector Undertakings (DPSUs), Ordnance Factory Board (OFB). It would be scaled up for promoting the creation of Intellectual Property in the sector and its commercial utilisation. 

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