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Chief of Defence Staff (CDS) Gen. Bipin Rawat said that in the last three years, the country witnessed a staggering 700% growth in defence exports – from ₹1,521 crore in 2016-17 to ₹10,745 crore in 2018-19, which is an all-time high and 19th in the list of defence exporters in 2019.

Key points

• India is the third largest spender on defence around the world
• India accounts for 9.2% of global arms import.
• With the aim to achieve a manufacturing turnover of $25 billion or ₹1,75,000 crore, including exports of $5 bn in aerospace and defence goods and services by 2025, in August, the Defence Ministry issued a draft ‘Defence Production & Export Promotion Policy (DPEPP) 2020’
• A series of measures had been taken since 2014 to boost exports, including simplified defence industrial licensing, relaxation of export control and grant of No Objection Certificates (NOC).
• Defence Attaches in Indian missions are empowered to promote defence exports which would also strengthen defence diplomacy.

DPEPP 2020

The policy has laid out following goals and objectives:

1. To achieve a turnover of Rs 1,75,000 Crores (US$ 25Bn) including export of Rs 35,000 Crore (US$ 5 Billion) in Aerospace and Defence goods and services by 2025.
2. To develop a dynamic, robust and competitive Defence industry, including Aerospace and Naval Shipbuilding industry to cater to the needs of Armed forces with quality products.
3. To reduce dependence on imports and take forward “Make in India” initiatives through domestic design and development.
4. To promote export of defence products and become part of the global defence value chains.
5. To create an environment that encourages R&D, rewards innovation, creates Indian IP ownership and promotes a robust and self-reliant defence industry.

The Policy brings out multiple strategies under the following focus areas:

1. Procurement Reforms
2. Indigenization & Support to MSMEs/Startups
3. Optimize Resource Allocation
4. Investment Promotion, FDI & Ease of Doing Business
5. Innovation and R&D
6. DPSUs and OFB
7. Quality Assurance & Testing Infrastructure
8. Export Promotion

Reference:

1. https://www.thehindu.com/news/national/defence-exports-increased-700-in-last-three-years-gen-bipin-rawat/article32563390.ece