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DEFENCE EQUIPMENT - Shanmugam IAS academy in coimbatore
DEFENCE EQUIPMENT

INDIGENIZATION OF DEFENCE EQUIPMENT

What’s in news?

Defence Minister emphasized the need for indigenization of defence equipment to reduce dependence on imports and improve operational capability of the armed forces.

Key data:

Efforts are on to engage the private sector through Make In India initiative in the sector.

Background:

  • India is among the top 5 countries spending on defence.
  • India has the 2nd largest standing army in the world.
  • As per the FY 2018-19, the allocation for defence in India’s budget is around US$ 45.61 bn3 (excluding defence pension). Around 1/3rd of this amount is allocated for capital expenditure.
  • India’s requirements on defence are catered largely by imports.

Make in India: 

  • Make in India is an initiative launched on September 25, 2014.
  • The program aims to encourage national companies and multinational companies to manufacture products in India.
  • The chief objectives behind this campaign is the creation of jobs and also skills enrichment in 25 sectors of the Indian economy.

Make in India’ Initiative in Defence Sector:

  • Defence Procurement Procedure (DPP) has been revised in 2016 wherein specific provisions have been introduced for stimulating growth of the domestic defence industry.
  • A new category of procurement ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}’ has been introduced in DPP-2016 to promote indigenous design and development of defence equipment
  • ‘Make in India’ programme is being used by the Government for defence procurements by categorising the capital acquisition proposals under ‘Buy (Indian-IDDM)’, ‘Buy (Indian)’, ‘Buy and Make (Indian)’, ‘Make’ and ‘Strategic Partnership Model’ categories of Defence Procurement Procedure (DPP)-2016.
  • Government has notified the ‘Strategic Partnership (SP)’ Model which envisages establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers.
  • Government established two defence industrial corridors to serve as an engine of economic development and growth of defence industrial base in the country.
  • An innovation ecosystem for Defence titled Innovations for Defence Excellence (iDEX) has been launched
  • The Defence Ministry has instituted a new framework titled ‘Mission Raksha Gyan Shakti’ which aims to provide boost to the IPR culture in indigenous defence industry.
  • The process for export clearance has been streamlined and made transparent & online.

 

Links to note:

https://www.iasipstnpsc.in/defense/

http://www.makeinindia.com/policy/new-initiatives

http://www.newsonair.com/Main-News-Details.aspx?id=370384

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