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India to create robust defence industry

Policy seeks transfer of technology


Policy seeks transfer of technology


Gen Rawat , Defence Expo 2018
General Rawat at Defexpo 2018(file picture).


The government has shared a draft Defence Production Policy 2018 with all concerned stakeholders for their views before notification, said Minister of State for Defence Dr. Subhash Bhamre in a written reply to Rajya Sabha or Upper House on 6 Aug 2018.

It has been prepared to provide a focused, structured and significant thrust to development of defence design and production capabilities in the country.

The government had announced the policy in Budget Speech 2018 to promote domestic production by public sector, private sector and micro, small and medium enterprises (MSMEs).

The salient features 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 current dependence on imports and strive to achieve self-reliance in development and manufacture of weapon systems/platforms.

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.

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.

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