Defence Production Policy: A Politive Change – CII

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CII has welcomed the newly released Defence Production Policy and has appreciated the remarkable work done by the Ministry of Defence (MOD). Having a prime aim of self-reliance in defence, the first ever Defence Production Policy covers a wide spectrum of defence production related issues. The release of Defence Production Policy has created a wave of positive reactions from the industry.

The objectives of the policy are to achieve substantive self reliance in the design, development and production or equipment/weapon systems/platforms required for defence in as early a time frame as possible; to create condition conducive for the private industry to take an active role in this endeavour; to enhance potential of SMEs in indigenization and to broaden the defence R&D base of the country.

The policy also mentions creation of conducive conditions to encourage pro-active participation of the Indian Defence (private) industry. However, the policy does not clearly highlight a level playing field for the private industry. In a CII-MOD Interaction, MOD has solicited views from the industry to make the policy more effective. The Officials from the MOD indicated that the ‘Make’ procedures would be further streamlined sooner. CII was also requested to give its recommendations on ways and means by which the ‘fund’ for the R&D would be most appropriately implemented. As regards the yearly review of progress of ‘Self Reliance’, industry was requested to provide inputs on parameters to measure the level of Self Reliance’ achieved.

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