India As A Defence Manufacturing Hub

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.

Webinar Objectives

  1. Representatives from the policy establishment to highlight the policy measures and challenges in Atmanirbhar -Defence Manufacturing
  2. Respond to question on Industry concerns/improvement opportunities on policy steps.
  3. Perspective on 0perationalising the defence manufacturing policy at state level.

Webinar Format

Panel Discussion - Baba Kalyani, S P Shukla, Nitin Gokhale

Webinar -Key Coverage Areas

  1. 1.MoD recently issuing a negative list of 101 defence items. After a certain period of time these items will not be procured from outside. This list is the beginning of a process that has the potential to transform the defence industry. This list of 101 items includes not only minor parts but also warfare systems, integrated platforms, combat vehicles. This list is just a beginning, so that in the coming time, defence equipment worth Rs 1.40 lakh crore will be purchased domestically. Will it be possible
  1. Several bold policy reforms to promote self-reliance, in the defence sector. These include increasing the limit to 74 percent for Foreign Direct Investment through automatic route in the Defence sector 
  2. Setting up of Defence corridors in UP and Tamil Nadu in addition to Strategic Partnership (SP) Model to promote investments, liberalisation of Industrial License regime, and 'Defence Investor Cell' to address the problems of investors.
  3. Can India’s Defence Tech Startups Match Up To Aatma Nirbhar Bharat Challenge?