Open General Export Licence in next month
The government will, within a month, launch new ‘Open General Export License’ scheme to boost Indian defence exports, disclosed Sanjay Jaju, Joint Secretary, Department of Defence Production in Ministry of Defence.
The industry will be able to access international market and make the products more competitive through the new license, he said at the ‘Workshop for Defence Export Promotion’ organised by FICCI in New Delhi on 17 June 2019.
He stressed that the production will also become better, both qualitatively and will also provide value for money for Indian customer.
“We are working on launching the Open General Export License where the entire process of taking permission from government will also be further reduced,” said Jaju.
Indian exporters need to diversify the product line to be internationally competitive, he pointed out.
“It is important for us to now look at platforms and while looking at these platforms, it is important that we are competitive and able to provide good value for money to the buyer,” said Jaju.
Further highlighting the potential of defence exports, Jaju stated that Indian manufacturing economy is likely to reach US$1 trillion in next five years of which he expects US$25 billion would come from the defence sector and further US$5 billion to be generated by exports.
Rear Admiral Atul Khanna, Additional Director General Quality Assurance (Naval), DGQA, Ministry of Defence pointed out that the Indian defence industry is currently undergoing through a tectonic phase.
“Demand side is moving much faster and the catch-up between demand and production is not happening. Given the policy level changes happened over last 5 years, next decade is going to turn the tides,” he said.
One of the major challenges faced by the private defence industry while exporting is the question of the value of goods sold to the Indian forces, added Cmde Mukesh Bhargava, Member – National Defence Committee of FICCI and ED & Member of Board, L&T Defence.
He highlighted that Defence is a priority sector for the government under the Make In India plan. fiinews.com
