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.
-Source: The Hindu