Categories: Business

Government eyeing turnover of Rs 1.75 trillion in defense manufacturing by 2025

Photo: PTI

Government eyeing turnover of Rs 1.75 trillion in defense manufacturing

new Delhi. The government has set a target of Rs 1.75 lakh crore business by 2025 from defense manufacturing in the country. The government believes that the region has the potential to revive the entire economy, which is facing many challenges due to Kovid-19. The Ministry of Defense has drafted the 'Defense Production and Export Promotion Policy 2020' for defense manufacturing in the country. It has set a target of exporting Rs 35,000 crore of goods and services in the defense and aerospace sector in the next five years. This is a part of the government's total business estimate of Rs 1.75 lakh crore for the sector. This policy is envisaged as a comprehensive guidance document to the Ministry of Defense.

This policy will direct the Ministry in a targeted, infrastructural manner to make it self-reliant in production of military hardware and platform and capable of export. Officials said the policy aims to develop a dynamic, growing and competitive defense industry. It also includes manufacturing of fighter jets to make warships capable of meeting the needs of the country's armed forces. In May, Finance Minister Nirmala Sitharaman announced several reforms related to the defense sector. It also included a separate budgetary allocation for the purchase of indigenously manufactured military products. At the same time, the limit of foreign direct investment through automatic clearance route in defense sector was also increased from 49 percent to seventy four percent.

The finance minister had also announced to make a restricted list of such weapons on an annual basis, whose imports would not be allowed. India is the preferred market for global defense products companies as India has been among the three largest defense products importers in the world for the last eight years. In the next five years, the Indian defense forces are estimated to spend about $ 130 billion on military products. The draft Defense Production and Export Promotion Policy also introduces a framework for designing and developing products domestically, reducing dependence on imports and advancing the Make in India initiative.

This post was published on August 3, 2020 10:53 pm

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