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Draft Defence Production and Export Promotion Policy 2020

Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Draft Defence Production and Export Promotion Policy 2020:

Context:

Ministry of Defence (MoD) has formulated and released a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020). 

  • It is envisaged as overarching guiding document of MoD to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports.

The policy has laid out following goals and objectives:

  1. To achieve a turnover of Rs 1,75,000 Crores (US$ 25Bn) including export of Rs 35,000 Crore (US$ 5 Billion) in Aerospace and Defence goods and services by 2025.
  2. To develop a dynamic, robust and competitive Defence industry, including Aerospace and Naval Shipbuilding industry to cater to the needs of Armed forces with quality products.
  3. To reduce dependence on imports and take forward “Make in India” initiatives through domestic design and development.
  4. To promote export of defence products and become part of the global defence value chains.
  5. To create an environment that encourages R&D, rewards innovation, creates Indian IP ownership and promotes a robust and self-reliant defence industry.
  6. The share of domestic procurement in overall defence procurement is about 60%. In order to enhance procurement from domestic industry, it is incumbent that procurement is doubled from the current ₹70,000 crore to ₹1,40,000 crore by 2025.

The Policy brings out multiple strategies under the following focus areas: 

  1. Procurement Reforms
  2. Indigenization & Support to MSMEs/Startups
  3. Optimize Resource Allocation
  4. Investment Promotion, FDI & Ease of Doing Business
  5. Innovation and R&D
  6. DPSUs and OFB
  7. Quality Assurance & Testing Infrastructure
  8. Export Promotion

Other highlights of the policy:

  1. The policy states that a negative list of weapons and platforms will be notified with year-wise time lines for placing an embargo on import of such items from those dates.
  2. A Technology Assessment Cell (TAC) would be created. It would assess the industrial capability for design, development and production, including re-engineering for production of major systems such as armoured vehicles, submarines, fighter aircraft, helicopters and radars with the major industries in the country, the policy states.
  3. A Project Management Unit (PMU) will be set up with representation from the Services for estimation of development and production lead times specifications and technologies involved, life cycle costs and maintenance requirements of platforms, equipment and weapon systems.

InstaLinks:

Prelims Link:

  1. Functions of the proposed Technology Assessment Cell under the policy.
  2. Who will notify the negative list of weapons and platforms?
  3. Proposed Goals of the policy.
  4. Other key proposals.

Mains Link:

Discuss the objectives and significance of the Draft Defence Production and Export Promotion Policy 2020.

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Sources: pib.