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DEFENCE PRODUCTION AND EXPORT PROMOTION POLICY 2020

Focus: GS-III Internal Security Challenges

Why in news?

Ministry of Defence (MoD) has formulated a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020).

Defence Production and Export Promotion Policy 2020 (DPEPP 2020)

The DPEPP 2020 is envisaged as overarching guiding document of MoD to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports.

Regarding Domestic Production and Defence Exports

  • The share of domestic procurement in overall defence procurement is about 60% now, and in order to enhance procurement from domestic industry, it is incumbent that procurement is doubled to RS. 1.4 Lakh crores by 2025 – according to DPEPP 2020’s aims.
  • The policy says that Defence Attachés have been mandated and are supported to promote export of indigenous defence equipment abroad, with the efforts in this direction supplemented by selected Defence Public Sector Undertakings (DPSU).
  • Subject to strategic considerations, domestically manufactured defence products will also be promoted through Government to Government agreements and Lines of Credit/Funding.
  • In addition, with the aim to move away from licensed production to design, develop and produce indigenously and own the design rights and Intellectual Property (IP) of the systems projected in Long Term Integrated Perspective Plan (LTIPP) of the Services a Technology Assessment Cell (TAC) would be created.

Aims / Objectives of the DPEPP 2020 Policy

  • To achieve a turnover of Rs 1.75 Lakh Crores, including export of Rs 35 Thousand Crores in Aerospace and Defence goods and services by 2025.
  • To develop a dynamic, robust and competitive Defence industry, including Aerospace and Naval Shipbuilding industry to cater to the needs of Armed forces with quality products.
  • To reduce dependence on imports and take forward “Make in India” initiatives through domestic design and development.
  • To promote export of defence products and become part of the global defence value chains.
  • To create an environment that encourages R&D, rewards innovation, creates Indian IP ownership and promotes a robust and self-reliant defence industry.

In Aerospace

The policy has identified the opportunities in the aerospace industry in the following segments:

  1. Aircraft build work,
  2. Aircraft Maintenance,
  3. Repair and Overhaul (MRO),
  4. Helicopters, engine manufacturing and MRO work,
  5. Line replaceable units,
  6. Unmanned Aerial Vehicles and upgrades and retrofits.
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September 2022
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