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Indigenous Production of Defence Equipment

Context:

Raksha Rajya Mantri in his reply in the Rajya Sabha said that the ‘Make in India’ scheme is implemented in defence sector to promote indigenous design, development and manufacture of defence items. 

Relevance:

Prelims, GS-III: Internal Security Challenges

Dimensions of the Article:

  1. Progress under the Make in India Scheme
  2. Initiatives under the AatmaNirbhar Bharat Scheme in defence

Progress under the Make in India Scheme

  • Many significant projects including 155mm Artillery Gun system ‘Dhanush’, Bridge Laying Tank, Thermal Imaging Sight Mark-II for T-72 tank, Light Combat Aircraft ‘Tejas’, ‘Akash’ Surface to Air Missile system, Submarine ‘INS Kalvari’, ‘INS Chennai’, Anti-Submarine Warfare Corvette (ASWC), Arjun Armoured Repair and Recovery Vehicle, Landing craft utility, etc. have been produced in the country under ‘Make in India’ initiative of the Government in last few years.
  • As per Defence Acquisition Procedure (DAP), priority has been accorded to capital acquisition through ‘Buy (Indian-IDDM)’, ‘Buy (Indian)’, ‘Buy and Make (Indian)’, ‘Buy and Make’ ‘Strategic Partnership Model’ or ‘Make’ categories over Buy (Global) category. 

Initiatives under the AatmaNirbhar Bharat Scheme in defence

  • The Government has taken several policy initiatives and brought in reforms to promote indigenisation and self-reliance in defence manufacturing, under AatmaNirbhar Bharat Mission in the defence sector.
  • Ministry of Defence has notified a ‘First Positive Indigenisation list’ and ‘2nd Positive Indigenisation list’ of more than 100 items each in 2021, for which there would be an embargo on the import beyond the timelines indicated against them. This offers a great opportunity to the Indian defence industry to manufacture these items using their own design and development capabilities to meet the requirements of the Indian Armed Forces.
  • SRIJAN portal to promote indigenisation was launched in 2020 listing over 10 thousand items (which were earlier imported) displayed on the portal for indigenization.
  • More than 1500 components & spares have been indigenised in the year 2020-21 as a result of efforts of indigenisation by DPSUs, OFB & SHQs through their own process of indigenisation (In-house, Make-II & Other than Make-II).
  • Defence Procurement Procedure (DPP) 2016 has been revised as Defence Acquisition Procedure (DAP)-2020, which is driven by the tenets of Defence Reforms announced as part of ‘AatmaNirbhar Bharat Abhiyan’.
  • In order to promote indigenous design and development of defence equipment ‘Buy (Indian-IDDM (Indigenously Designed, Developed and Manufactured))’ category has been accorded top most priority for procurement of capital equipment. The ‘Make’ Procedure of capital procurement has been simplified. There is a provision for funding up to 70% of development cost by the Government to Indian industry under Make-I category. In addition, there are specific reservations for MSMEs under the ‘Make’ procedure.
  • The Government of India has enhanced FDI in Defence Sector up to 74% through the Automatic Route for companies seeking new defence industrial license and up to 100% by Government Route.
  • An innovation ecosystem for Defence titled ‘Innovations for Defence Excellence (iDEX)’ has been launched in 2018 aimed at creation of an ecosystem to foster innovation and technology development in Defence and Aerospace. iDEX engages Industries including MSMEs, startups, individual innovators, R&D institutes and academia and provide them grants/funding and other support to carry out R&D which has potential for future adoption for Indian defence and aerospace needs.
  • Government has notified the ‘Strategic Partnership (SP)’ Model in May, 2017, which envisages establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers to set up domestic manufacturing infrastructure and supply chains.
  • An Inter-Governmental Agreement (IGA) on ‘Mutual Cooperation in Joint Manufacturing of Spares, Components, Aggregates and other material related to Russian/Soviet Origin Arms and Defence Equipment’ was signed in 2019 to enhance the After Sales Support and operational availability of Russian origin equipment currently in service in Indian Armed Forces.

-Source: PIB

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December 2022
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