New Delhi: Defence Minister Rajnath Singh said the Government is committed to working towards achieving a USD 26 billion Defence industry by 2025.
Addressing the second annual session of Society of Indian Defence Manufacturers here today, he said the Defence sector has been identified as one of the most prominent sectors under “Make in India” Initiative to realize USD 5 Trillion Economy by 2024.
Several steps have been taken under the “Make in India” initiative to make the country a major Defence manufacturing hub and net Defence exporter. The Government would not hesitate to initiate more measures if required, he added. He said that the defence production policy reflects the resolve of the government to achieve USD 26 billion Defence industry with an anticipated investment of USD 10 Billion in aerospace and Defence goods and services by 2025. This will also provide employment to about 2-3 million people. He said, the government has introduced many far-reaching reforms in the past five and a half years to create an ecosystem where private and public sectors contribute together as per their respective strength and experience. The reforms have touched almost all aspects of Defence production and procurement, he added.
Singh said that simplification of procedures for Defence Exports has resulted in the export of Rs 10,745 Crore in 2018-19, which is nearly seven times the export achieved in 2016-17 and a target of USD 5 Billion for exports has been set till 2024.
Under the “Make” procedure, till date, 40 industry development proposals have been given in-principle approval. Eight such projects would have an estimated value of Rs 2,000 Crore in the next five years. As against 215 Defence licenses issued till 2014, the number of Defence licenses issued went up to 440 by March 2019, he added.
Steps are being taken to make defence manufacturing sector self-reliant and a new Transfer of Technology (ToT) policy is under a process that will pave the path of transferring DRDO developed technologies to the industry. A new policy on the use of DRDO patents by the industry is under consideration to promote and motivate the Defence industry for innovation. He mentioned that till now over 900 ToT licencing agreements have been signed with the industry which is a major step towards making Defence manufacture sector self-reliant.
Rajnath Singh assured the Defence Manufacturers of all possible support from the Government. He said that the government is open to new ideas and is committed to fully harness the energies, entrepreneurship spirit and enterprise of the private sector in the defence sector.