New Defence Production Policy focuses on indigenisation

"More than 50 per cent," Defence Minister A K Antony said when asked about the government's aim in terms of percentage in indigenising defence manufacturing through the new policy. He was speaking after releasing the policy document here.

Aiming to achieve self-reliance in design, development and production of defence equipment, weapon systems and platforms, the Government came out with its first DPrP.
"Self reliance is a long dream but we are still far behind... We need to strengthen our security apparatus in view of the prevailing security scenario, which is highly volatile and causes anxiety," he said.

He said dependence on foreign imports for national security was "unacceptable" and through the new policy, the government hoped to build a strong defence industrial base in the country to change the situation.

The Minister said the policy, which will come in with immediate effect, would create conducive conditions for the private industries to play an active role to achieve the objective and also aims to provide them a level-playing field in the sector.

Antony said from now on, preference will be given to indigenous design, development and manufacture of defence equipment coming from both public and private sectors.
"Wherever the required arms, ammunition and equipment are possible to be made by the Indian industry within the time lines required by the Services, the procurement will be made from the indigenous sources," he said.

The Minister said in cases where the Indian industry is not in a position to make and deliver the equipments in the requisite time frame, procurement from foreign sources would be resorted to as per the DPrP.

Based on the approved Long Term Integrated Perspective Plan (LTIPP), equipment, weapon systems and platforms required ten years and further down the line will by and large be developed within the country, Antony said.

However, the new policy allows sub-systems that are not economically viable or practical to be made within the country, to be imported and  calls for ensuring that they are available at all times.

To assess the self reliance achieved through the year, the Defence Minister will hold an annual review of the progress made.

Under the DPrP, a separate fund will be created to provide necessary resources to public and private sector as well as academic and scientific institutions to support research and development of defence products.

"Our endeavour will be to build a robust indigenous defence industrial base by proactively encouraging larger involvement of the Indian private sector in design, development and manufacturing of defence equipment," he added.