Big export, jobs in draft defence production policy
NEW DELHI: Hackathons will be conducted on specific problem areas… Department of defence production and the Defence Research and Development Organisation will announce challenges for major defence R&D requirements…
DRAFT DEFENCE POLICY
A draft defence production prepared by the government visualizes 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 that target would require an investment of ₹70,000 crore and create up to three million jobs. Another goal in the policy 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, electronic warfare systems and night fighting enablers.
The Centre had declared in Budget 2018-19 that it would introduce an industry-friendly Defence Production Policy 2018 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.
Foreign direct investment (FDI) regime could be further liberalised. “FDI up to 74% under automatic route will be allowed in niche technology areas,” the 14-page document said.
It said start-ups will be involved in technology development in aerospace and defence sectors.
“Hackathons will be conducted on specific problem areas… Department of defence production and the Defence Research and Development Organisation will announce challenges for major defence R&D requirements…An amount of ₹1,000 cr will be allocated for this purpose for period 20182022,” the draft policy said.
The document talks about creating a defence investor cell to handhold MSMEs and other investors in the defence production sector. It also seeks to liberalise the licensing process, with all applications to disposed off in 30 days.