BUILDING A LOCAL DEFENCE INDUSTRY ECOSYSTEM
Manufacturing Today|April 2023
INDIA HAS LONG BEEN RECOGNISED AS A RISING GLOBAL POWER ECONOMICALLY AND MILITARILY. WITH ITS STRATEGIC LOCATION IN SOUTH ASIA AND THE RECENT INCREASE IN TENSIONS WITH ITS NEIGHBOURS, INDIA HAS PRIORITIZED THE DEVELOPMENT OF ITS DEFENCE MANUFACTURING INDUSTRY. THIS SECTOR HAS GROWN SIGNIFICANTLY OVER THE PAST FEW YEARS, AND WITH THE GOVERNMENT'S EMPHASIS ON MAKE IN INDIA," IT IS EXPECTED TO CONTINUE TO EXPAND.
SUJATHA VISHNURAJ
BUILDING A LOCAL DEFENCE INDUSTRY ECOSYSTEM

India has emerged as a significant global superpower, both economically and militarily. The country's strategic location in South Asia has made it a key player in the defence industry, making India prioritize the development of its defence manufacturing sector. With the government's emphasis on 'Make in India,' there has been a significant increase in domestic companies participating in the defence sector. The Make in India Policy (MII) implemented by the Department of Industrial Policy & Promotion, Ministry of Commerce, has extended to 25 focused sectors. The defence sector is the most vital and relevant. The government has also implemented policies to incentivize the domestic production of defence equipment and technology, such as the recently launched Defence Acquisition Procedure 2020 (DAP 2020). In the post-pandemic world, there is an opportunity for Indian defence manufacturers to attract present and future foreign investment.

The Defence Research and Development Organisation (DRDO) is a key driver of India's defence manufacturing industry. The DRDO has collaborated with the Indian industry to develop technologies such as the BrahMos supersonic cruise missile and the Tejas fighter jet. The DRDO is responsible for developing indigenous technologies for the country's defence needs, from missile technology to electronic warfare systems.

THE OPPORTUNITIES:

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