PM Modi recently announced the establishment of two defence corridors and set an ambitious defence export target of Rs 35,000 crore by 2025. The Ministry of Defence (MoD) is gearing up to address the challenges and fine tune the policies that provide impetus to defence production in India. Manish Kumar Jha caught up with Ajay Kumar, Secretary, Department of Defence Production, MoD to an overview on the new initiatives at DDP.
The Draft Defence Production (DDP) Policy 2018 envisions India as one of the world’s top 5 defence producers by 2025. It also sets a defence export target of Rs 35,000 crore ($5 billion) by 2025. How realistic is the vision?
The value of production from OFB (Ordnance Factories Board) and DPSUs (Defence Public Sector Undertakings) put together is currently approximately Rs 55,000 crore ($8 billion). Nearly 65 per cent of the parts/components/subsystems have been delicensed and as a rough estimate, approximately $3 billion worth of defence items are being manufactured in the private sector. Thus, presently defence production would stand at around $11 billion.
This policy envisages adding another $14 billion worth of production in seven years, which translates to CAGR of 15 per cent approximately. With the opening up of the sector and the thrust being given to the private sector, DDP believes that these numbers are attainable.
The DDP policy is expected to spur private investments in defence sector. Elaborate measures have also been proposed for export promotion. The targets are kept on the higher side as moderate ‘incrementalism’ will not have the desired effect.
The announcement of two Defence Industrial Corridors presupposes a robust ecosystem of defence manufacturing by Indian and foreign OEMs. Can you apprise us of the development? How much does the government plan to invest?
Denne historien er fra August 18, 2018-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra August 18, 2018-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
MEMORIES & IMPRESSIONS
Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.
The Robotaxi Market
The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.
And the Nobel Prize Goes to AI
The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.
Ola Electrified
Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.
Sharp Slide in Industrial Output on Eve of Deepavali
India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.
Heralding the Solar Era with Sustainable Electrification
RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more
A WELL-GREASED MACHINE
The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh
Disruption Ahead: Beyond Organisation Charts and Structures
ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.
