Defence Manufacturing

Indian government endeavours to boost indigenous defence manufacturing.

The Government has identified the Defence and Aerospace sector as a focus area for the ‘Aatmanirbhar Bharat’

2.1%

GDP spent on defence (2021-22)

15%

Share in global arms import

US$ 11.3 bn

Market size of the defence sector

19%

Defence Capital Expenditure (FY21-22)

3rd

largest military spender in the world

68%

Capital Acquisition Budget of the Defence Services for FY 2022-23

74%

Investments FDI in defence sector through the Automatic Route

2

dedicated Defence Industrial Corridors in the States of Tamil Nadu and Uttar Pradesh

IDDM

Focus on Indigenously Designed Developed and Manufactured (IDDM) category is expected to bring significant investments in defence R&D.

Defence IPR Policy for Jointly Developed Software Products

This IPR Policy will be applicable to software products developed by Defence Services jointly with a developer(s).

Innovations for Defence Excellence (iDEX)

Ministry of Defence aims to create an ecosystem which fosters innovation and encourages technology development in Defence by engaging R&D institutes, academia, industries, startups and even individual innovators.

OGEL for Export of Parts and Components

The policy allows the export or transfer of munitions from India to foreign countries.

MSMEs in Defence

One of the key objectives of the Make in India initiative of the Government of India is to bring Micro, Small and Medium Enterprises (MSMEs) into the defence supply chain and thereby boost the self-reliance of the country in defence, and also contribute towards the burgeoning defence exports market.
Defence Production Policy 2018 (Draft)

An industry friendly policy to promote domestic production by public sector, private sector and MSMEs
Defence Offset Guidelines

Policy to leverage capital acquisitions to develop Indian defence industry

Defence Acquisition Procedure 2020

To improve efficiency of the procurement process and promote growth of the domestic defence industry.

Streamlining the Procedure for Grant of Industrial Licenses

Providing clarity to the process of procuring industrial licenses
Strategic Partnership Model

Aims to revitalise defence industrial ecosystem and progressively build indigenous capabilities

Stimulus 2020

Increased push for ‘Make in India’ for self-reliance in defence production.
Defence Testing Infrastructure Scheme

To Provide for Test Facilities in Defence and Aerospace Sectors.

Self-reliance in Defence Manufacturing

With the latest embargo on import of 101 items, it is estimated that contracts worth almost US$ 53 bn will be placed upon the domestic industry within the next 5-7 years.

Draft Defence Production & Export Promotion Policy - DPEPP 2020

Indian Defence industry, primarily catering to the needs of the armed forces, has evolved with diversified product mix and market.
2nd draft Defence Procurement Procedure 2020

The aim of the Defence Acquisition Procedure (DAP), erstwhile Defence Procurement Procedure (DPP), is to ensure timely procurement of military equipment, systems and platforms as required by the Armed Forces in terms of performance, capabilities and quality standards, through optimum utilisation of allocated budgetary resources.

Amended Draft DAP

The amendment to the Defence Acquisition Procedure were announced on July 27, 2020.
Draft Defence Production and Export Promotion Policy 2020

As part of the 'Atmanirbhar Bharat' initiatives the draft policy aims to make India self sufficient in the defence production, management, R&D, investment and IP ownership domains.

Stimulus measures for Infrastructure, Capital Goods and Defence

An additional budget of US$ 3.4bn has been allocated for capital spending towards multiple sectors including Defence, Infrastructure and Capital Goods.

Ministry of Defence

+91-11-23019474

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Provides the policy framework and wherewithal to the Armed Forces to discharge their responsibilities in the context of the defence of the country

Defense and Strategic Industries Association of India

+91-11-42420580

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One of the designated agencies of government to promote defense indigenization

Defence Research & Development Organisation

+91-11-23902481/87

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A network of 50 laboratories engaged in developing defence technologies covering various disciplines

Department of Defence Production

+91-11-23011587

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Deals with matters pertaining to defence production.

Ministry of Defence

investment opportunities

  • US$130bn worth investment opportunities to emerge in the sector over the next 5-7 years.
  • Defence Procurement Procedure has been amended to encourage participation of foreign OEMs.
  • Above US$300mn worth of procurement will be necessary to be eligible for project offsets.
Useful Links:

key investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

Airbus has supplied technology to India's civil aviation and defence sectors

BAE Systems recognizes India as one among its top global defence markets

Lockheed Martin to make F-16 Block fighter jets in India with local partner

Raytheon to make Stinger air defence missile components with local partner

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News

India’s defence exports grow by 334%: Govt

September 26, 2022

India, Israel to further defence cooperation

June 3, 2022

PM meets Nordic counterparts, invites investments in India

May 5, 2022

India test fires BrahMos Supersonic cruise missile successfully

March 25, 2022

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Events

Oct 07,2022

ASSOCHAM Virtual Colloquium “Social Stock Exchange in India”

Oct 10,2022

Conference on B20 Indonesia Global Dialogue in India

Oct 10,2022

Business Forum and B2B Meetings with Sustainable Fashion Delegation, UK

Oct 10,2022

4th Edition of Heli-India Summit 2022
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