Mains Paper 3: Economy | Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
From UPSC perspective, the following things are important:
Prelims level: Particulars of the SPG
Mains level: Indigenization of defence manufacturing
Opening up for Private Players
- The government issued a notification last week simplifying the process for approval of manufacturing of a range of defence and aerospace equipment and components by private industry.
- It is to be done by bringing them under the licensing authority of the Department of Industrial Policy and Promotion (DIPP).
- Items are listed in three categories — defence aircraft, warships of all kinds, and allied items of defence equipment.
- The most significant aspect is that warships of all kinds, surface and sub-surface, have been included in the listing.
- The industrial licensing has been terminated for ‘parts and components of the equipment’ which would benefit the small and medium enterprises (SMEs).
- This move is also expected to help foreign Original Equipment Manufacturers (OEM) looking for partnerships with the private sector.
- The Defence Ministry has also formulated an ambitious Strategic Partnership (SP) model under the Defence Procurement Procedure (DPP).
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