PIB Update 1st April: Make in India and Atmanirbhar Bharat Defense Production Initiative

Make in India: The proposals that were given Acceptance of Necessity (AoN) under the Buy (Global) category of Capital Acquisition in the past have been reviewed as per DAP-2020, and the Defence Acquisition Council (DAC) has approved the cancellation/closure of AoN for 09 such proposals worth Rs. 46,695 crore. The details of service-wise platforms cannot be shared in the interest of national security. 

Reforms made to encourage Make In India

Under the ‘Make in India’ program, the government has taken several policy initiatives in recent years, including reforms to encourage indigenous design, development, and manufacture of defense equipment in the country, including the design and development of projects like Kamov 31. 

Among these initiatives is the Defense Acquisition Procedure (DAP)-2020, which prioritizes the procurement of capital items from domestic sources.

  • 18 major defense platforms are being announced for industry-led design and development.
  • Notification of two ‘Positive Indigenisation Lists,’ totaling 209 items of Services, and one ‘Positive Indigenisation List,’ totaling 2851 items of Defence Public Sector Undertakings (DPSUs), for which an embargo on import beyond the timelines indicated against them would be imposed.
  • With a longer validity period, the industrial licensing process will be simplified.
  • Foreign Direct Investment (FDI) policy liberalization, allowing 74 percent FDI under the automatic route.
  • Simplifying the manufacturing process; launching the Innovations for Defence Excellence (iDEX) program, which includes startups and Micro, Small, and Medium Enterprises (MSMEs).
  • The Public Procurement (Preference to Make in India) Order was enacted in 2017.
  • SRIJAN, an indigenization portal, has been launched to help Indian industry, including MSMEs, indigenize.
  • Offset policy reforms with a focus on attracting investment and facilitating technology transfer for defense manufacturing by assigning higher multipliers.
  • Two Defence Industrial Corridors, one in Uttar Pradesh and the other in Tamil Nadu.

The Department of Defence Production, Ministry of Defence, has released a draught ‘Defense Production & Export Promotion Policy (DPEPP) 2020’, which is the Ministry of Defence’s overarching guiding document for providing a focused, structured, and significant thrust to the country’s defense production capabilities for self-reliance and exports in the Defense sector, including the Aerospace and Naval Shipbuilding sectors.

Share This:

Leave a Comment