Webinar Background and Issues
India was the world’s second-largest arms importer, accounting for 9.2% of the global arms imports from 2015-19. The overwhelming dependence on Russian arms has declined, only for India to diversify its arms stockpile, now inking defence deals with the USA, Israel and France, among various others.
According to another SIPRI report titled ‘Trends In World Military Expenditure, 2019’, India is the third-largest military spender in the world, after the US and China, with its military spending growing by 6.8% to $71.1 Bn in 2019.
Given this background, defence sector has already been identified as one of the core areas to boost ‘Make in India’ where immediate transformation is required. Prime Minister Narendra Modi also spelt out his vision of achieving five billion USD (Rs35,000 crore) defence related exports target to become net exporter of defence equipment in the next five years.
Towards this end, a draft Production and Export Promotion policy has been formulated and it was placed in the public domain seeking suggestions from various stakeholders.
The government also unveiled a production and Export Promotion policy aims at providing greater visibility of Armed Forces requirements to the defence manufacturing industry. The policy proposes establishment of an aero-engines complex with focus on Maintenance Repair Overhaul (MRO) as well as critical technologies. Under this policy export target has been set as 25 percent of the revenue. By 2025, this policy aims at achieving Rs 1.75 lakh crore in annual turnover.
To promote Atmanirbhar Bharat in the defence manufacturing, a separate budget of Rs 52,000 crore has been set aside for procurement from domestic vendors.
What is the business model for the Modi government to implement and to get its ‘atmanirbharta’ defence policy to take wing.
Panel Discussion - Baba Kalyani, S P Shukla, Nitin Gokhale
Webinar -Key Coverage Areas