The Cabinet Committee on Security’s approval for the procurement of 83 upgraded Tejas fighter jets for the Indian Air Force (IAF) signals a significant push to accelerate the slow and difficult
–
These acquisition categories are listed in decreasing order of
priority. They are prioritised based on the relative importance of
indigenisation. Apart from enhancing the minimum IC requirements,
the DAP 2020 also seeks to increase the indigenous availability of
high-end military materials and special alloys for future needs.
4 For this, the DAP 2020 has proposed
that public sector platform manufacturers, and research and
development establishments identify various materials that can be
indigenously developed by them or through transfer of technology
under the offset clause.
5 The DAP
2020 also seeks to utilise indigenous software for running
applications on equipment/systems and mandatorily include them
under the Buy (Indian – IDDM) and Buy (Indian) categories.
DAP) 2020 has increased the
indigenous content requirement in all categories of defence
procurement.
10 The DAP 2020 has
also proposed other measures to increase indigenisation such as
increase in indigenous availability of high-end military materials,
the use of indigenous software in equipment/systems and a boost to
innovation by start-ups and Micro, Small and Medium Enterprises
(
MSMEs). For a discussion on the changes
introduced in the DAP 2020, please see our previous article,
here.
Challenges to achieving self-reliance
While the industry stakeholders welcomed these new measures, the
domestic defence industry faces several challenges which hinders
India s pursuit of self-reliance in defence manufacturing.
These challenges are:
India’s defence sector growth imperatives remain unchanged: Salil Gupte
The Atmanirbhar Bharat vision requires policies that encourage global competitiveness, Salil Gupte, president of Boeing India said
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Simplification in the administration of offsets, incentives to original equipment manufacturers (OEMs) to increase their research and development (R&D) activities, and increasing the local aerospace and defence (A&D) ecosystem are some of the measures that will help Make in India, Salil Gupte president of Boeing India said
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Companies such as Boeing would look for taxation and other stimulus relief for airlines, Salil Gupte, the president of Boeing India says, as Union finance minister Nirmala Sitharaman readies to unveil her third budget. It will help India recover early from the economic shock that has resulted from the covid-19 pandemic. Simplification in the administration of offsets, incentives to original equipment manufacturers (OEMs)
India analyst: Can India implement reforms quick enough to rejuvenate its defense industry? January 11 Spurred as much by the economic considerations as the embarrassment of continued dependence on imports, the Indian government has taken several steps this year to galvanize defense production in the country. In what many consider to be a long-overdue reform, Finance Minister Nirmala Sitharaman announced May 16 the corporatization of the Ordnance Factory Board, or OFB, that manages 41-odd ordnance factories located across the country. This change is expected to double OFB’s turnover to approximately $4 billion by 2025 and, in the process, address concerns about the quality of its products.