Taking another leap in MakeInIndia Programme, Government of India is taking major step to strengthen the Make In India by its policy of ‘Buy (Indian)’, ‘Buy and Make (Indian)’ and ‘Make’ categories of capital acquisition. Currently, India is one of the largest importers of conventional defence equipment. According to government statistics, roughly 60% of India’s defence requirements are met through imports. India has the potential to emerge as a global platform for defence research, manufacturing, supply chain sourcing, software development, and offsets, which will strengthen our defence capabilities and spur industrial development as well as exports in this sector. So government is taking this time the Make In India mission in Defence sector. View more at #Hindustan360 .
What does Government say
The objectives of ‘Make in India’ programme of the Government are pursued by according preference to ‘Buy (Indian)’, ‘Buy and Make (Indian)’ & ‘Make’ categories of capital acquisition over ‘Buy & Make (Global)’ or ‘Buy (Global)’ categories and other policy initiatives such as liberalization of FDI policy & Industrial Licensing policy, simplification of export procedures, creating level playing field for Indian private and public sector companies. In the current Financial Year 2015-16, 33 capital acquisition proposals amounting to Rs.55,800 Crore (approximately ) have been accorded ‘Acceptance of Necessity (AoN)’under ‘Buy (Indian)’ and ‘Buy & Make (Indian)’ categories of capital acquisition till Jan 16.
So far, 34 FDI proposals/Joint Ventures have been approved in defence sector for manufacture of various defence equipment, both with Indian public and private sector companies. FDI amounting to Rs. 24.84 crore (US$ 5.02 million) has been received in the Defence Industry Sector from April 2000 to September 2015. Department of Industrial Policy & Promotion (DIPP) has issued 319 Industrial Licenses (ILs) to 190 Companies for manufacture of various defence equipment till December 2015.
[source – Ministry of Information and Broadcasting]
What the media says
Prime Minister Narendra Modi-led NDA government aggressively pushed for ‘Make in India’ in the defence sector in 2015, it failed to attract Foreign Direct Investment (FDI) in the sector with a paltry amount of Rs 56 lakh coming in since last year when norms were first eased by it.
This lackluster response of foreign investors is also the likely reason for another set of big changes that the government announced in November in defence FDI. The changes included FDI upto 49 percent through automatic route, permissions to be taken from FIPB beyond 49 percent, besides FVCI and portfolio being also permitted 49 per cent through automatic route.
[source – Economic Times]
It is a proud moment for us to share with you the report on “Make In India-An overview of Defence Manufacturing in India” at the momentous occasion of 11th Indo- US Economic Summit: Taking the Bilateral Trade to USD 500 Billion. Indian government is supporting the creation of a vibrant domestic defence manufacturing base in the country. Policy environment in India has never offered so many tangible opportunities to pursue co-development and co-production projects. We welcome you to come and Make in India!
[source – Mondaq]
Some Facts and Figures
http://inbministry.blogspot.in/2016/02/defence-projects-under-make-in-india.html http://economictimes.indiatimes.com/news/defence/ http://www.mondaq.com/india/