Indigenization through PPP Model in Defence Production

 TO FOSTER SELF-RELIANCE , CAPABILITY AND ADVANCEMENT IN TERMS OF NATIONAL SECURITY : INDIGENIZATION IS SOLUTION

During 2001, Defence Sector  is hitherto reserved for public sector only but with limited capability achieved by this sector lead to urge a new framework in defense policy.

By the past years, defence sector is being opened for 100% participation of Indian private sector with 26% in FDI by all means subject to licensing. With Recent changes in FDI policy, it further extends the limits to 49%.

The primary objective for allowing the Private sector is to meet the challenging needs of present day to day technology development at global level and work towards attainment of self-reliance in defence manufacturing with keeping intact the national securities and issues of country. The In-built advantages of the private sector are its reservoir of management, scientific and technological skills coupled with its ability to raise resources.

‘MAKE IN INDIA’ is Indigenization framework solution towards the stated objectives.  Although ,In Defence Manufacturing India has spend 37.3bn USD. 40% budget spend on capital acquisition with meeting 60% of requirements by Imports. INR 250bn is subjected to be invested in future in this sector.

CHALLENGES TO BE ADDRESS :

• High Uncertainty in terms of demand and supply
• High regulation market sector
• Long destination period
• Prepared for challenges 

ADVANTAGES ATTAINs :

• Very Limited competition, once excell
• Monopoly can be attained with good quality of product development
• Own Market with Foreign Partner countries

GREEN CULTURE for Defence Manufacturing:

• Cluster to setup in defence manufacturing
• Enhance better solution in Demand and supply for better profits
• Promote R&D Culture  with innovative solution for community in mind
• Taxation is to clarified in simpler manner or leveraged
• High standards of Standardization in Quality,System and

Therefore, Ample amount of opportunity to START EARLY & JUMP HIGH ! in upcoming year’s of Nation Defence Manufacturing Policy.

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