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Focus: GS-III Internal Security, Indian Economy

Why in news?

  • In the last three years, the country witnessed a “staggering” 700% growth in defence exports which is an all-time high and 19th in the list of defence exporters in 2019, according to Chief of Defence Staff (CDS).
  • India is the third largest spender on defence around the world – the only net importer in the category and account for 9.2% of global arms imports.

Details on what was done

  • With the aim to achieve a manufacturing turnover of $25 bn including exports of $5 bn in aerospace and defence goods and services by 2025, the Defence Ministry issued a draft ‘Defence Production & Export Promotion Policy (DPEPP) 2020’.
  • A series of measures had been taken since 2014 to boost exports, including simplified defence industrial licensing, relaxation of export control and grant of No Objection Certificates (NOC).
  • Specific incentives were introduced under the foreign trade policy. The Ministry of External Affairs (MEA) has facilitated a Line of Credit for foreign countries to import defence products.
  • Defence Attaches in Indian missions were empowered to promote defence exports which would also strengthen defence diplomacy.

Way Forward suggested by the CDS

  • We must move out of the constant threat of sanctions of dependency on individual nations for military requirements.
  • We must carry out a realistic analysis and have a hard look at the distribution of our budget expenditure.
  • Where feasible, defence exports can also be financed through the Exim Bank.

Click Here to read more about the Defence Production and Export Promotion Policy 2020 (DPEPP 2020)

-Source: The Hindu

February 2024