Export, job targets in draft defence production policy

NEWDELHI: A draft defence production prepared by the government visualises India as one of the top five countries in the aerospace and defence sectors in the coming years, with defence goods and services accounting for a turnover of ₹1.7 lakh crore by 2025.

The Draft Defence Production Policy 2018, released on Thursday, said achieving the target would require an investment of ₹70,000 crore and create up to three million jobs. Another goal set out is to clock exports worth ₹35,000 crore by 2025. It seeks to cut down by 2025 the dependence on imported military hardware such as fighter jets, helicopters, warships, combat vehicles, missiles, small arms, ammunition, surveillance systems, and night fighting enablers.

The Centre had declared in Budget 2018-19 that it would introduce an industry-friendly production policy to boost domestic production by public sector, private sector and micro, small & medium enterprises (MSMES).

Stakeholders have been given time till March 30 for their comments on the policy.

The foreign direct investment (FDI) regime could also be further liberalised. “FDI up to 74% under automatic route will be allowed in niche technology areas,” the document said. It said start-ups will be involved in technology development in aerospace and defence sectors.