The new draft which is expected to help the defence and aerospace sectors towards 'Atmanirbhar' is more focused and structured and will also help in enhancing the exports in the defence sector.
The draft is keeping in mind the recent package announced by the government to make India more self-reliant in all sectors especially in the defence sector. (Representational image)To achieve a turnover of $ 25 billion including export of $ 5 billion in the next five years the Ministry of Defence (MoD) on late Monday evening has released a new draft Defence Production and Export Promotion Policy 2020 (DPEPP). The draft for which the government has sought comments and feedback from all the stakeholders by August 17 before it is promulgated is on the government website.
The draft is keeping in mind the recent package announced by the government to make India more self-reliant in all sectors especially in the defence sector.
The new draft which is expected to help the defence and aerospace sectors towards ‘Atmanirbhar’ is more focused and structured and will also help in enhancing the exports in the defence sector.
What are the goals and objectives of the draft DPEPP?
1. By 2025, it has set a turnover target of Rs 1,75,000 Crores (US$ 25Bn) and export of Rs 35,000 Crore (US$ 5 Billion) in Aerospace and Defence goods and services.
2. Will help to develop a dynamic, robust, and competitive defence industry which will include not only aerospace but naval shipbuilding industry too which will help in meeting the needs of the armed forces.
3. Help in cutting down the dependence on imported weapons and encourage local design and development under the “Make in India” initiatives.
4. Once the products are made locally, it will help the industry to be part of the global defence value chains.
5. Once the new policy is in place, it will create an environment which will encourage R&D, create Indian IP ownership and help in building a robust and self-reliant defence industry.
Multiple Strategies in focus areas
The draft that has been uploaded on the Ministry of Defence website has outlined multiple strategies in focus areas which include: Indigenization & Support to MSMEs/Startups; Procurement Reforms; Optimize Resource Allocation; Innovation and R&D; DPSUs and OFB; Investment Promotion, FDI & Ease of Doing Business; Quality Assurance & Testing Infrastructure and finally Export Promotion.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
