[pib] New Defence Production Policy

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Mains Paper 2: Governance | Government policies & interventions for development in various sectors & issues arising out of their design & implementation

From UPSC perspective, the following things are important:

Prelims level: Draft Defence Production Policy 2018

Mains level: India’s rising defense imports and need for indigenous production


News

Context

In the Budget Speech 2018, Government had announced that it will bring out an industry friendly Defence Production Policy 2018 to promote domestic production by public sector, private sector and micro, small and medium enterprises (MSMEs)

Draft Defence Production Policy, 2018

1. Considering this, a draft Defence Production Policy 2018 has been prepared which provides a focused, structured and significant thrust to development of defence design and production capabilities in the country.
2. The salient feature of the Draft Policy which is already placed in public domain for consultation with stakeholders is as follows:

  • Creation of a dynamic, robust and competitive defence and aerospace industry as an important part of the ‘Make in India’ initiative.
  • Creation of a tiered defence industrial ecosystem in the country.
  • Reducing the current dependence on imports and strive to achieve self-reliance in the development and manufacture of weapon systems/platforms.

3. The Policy mandates for Transfer of Technology or enhanced Foreign Direct Investment (FDI) for domestic production in the event of non-availability of manufacturing capabilities in the country.
4. The policy envisages that Ordnance Factory Board (OFB) should focus on system integration, design and development, and actively engage domestic vendors in the private sector for other assembly work.

Defence Sector – DPP, Missions, Schemes, Security Forces, etc.
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