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<keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>'s <keyword id="19938893" type="General" weightage="20" keywordseo="defence-exports" source="keywords">defence exports</keyword> have surged from Rs 15 billion in 2017 to Rs 210 billion in 2024, registering a CAGR of 46 per cent, highlighted a report on 'Defence Conference 3.0' by Antique Stock Broking. The report stated that the <keyword id="20861069" type="General" weightage="20" keywordseo="global-shift" source="keywords">global shift</keyword> towards a China+1 strategy and the impact of the <keyword id="20016971" type="General" weightage="20" keywordseo="Russia-Ukraine-war" source="keywords">Russia-Ukraine war</keyword> offer India additional opportunities to fill supply chain gaps, potentially boosting its share in the <keyword id="23046732" type="General" weightage="20" keywordseo="global-defence-industry" source="keywords">global defence industry</keyword>. The report noted that the country's long-term goal is to become a global defence manufacturing hub is driven by Defence Public Sector Undertakings (DPSUs), private enterprises, start-ups, and MSMEs. "Indian defence exports have grown multi-fold from INR 15 bn in 2017 to INR 210 bn in 2024 at a CAGR of 46%. The China + 1 strategy and the Russia-Ukraine war provides an additional opportunity for India to fill the gap created in the supply chain and hence increase its contribution to the global defence industry," the report read. The report added that to achieve this target a well-developed domestic ecosystem is crucial as lower import content in products accelerates approvals by reducing international conflicts. The report added that the Ministry of Defence has taken key initiatives to attract Indian private players and global Original Equipment Manufacturers (OEMs) include establishing aerospace parks and defence corridors, fast-tracking project approvals, and enhancing development and testing facilities. Highlighting the potential in India's Maintenance, Repair, and Overhaul (MRO) segment the report explained that it holds a significant potential for global aerospace companies due to its technical expertise and cost-competitive solutions. "India provides a huge opportunity in the <keyword id="23046733" type="General" weightage="20" keywordseo="MRO-segment" source="keywords">MRO segment</keyword> for global aerospace leaders given the expertise the country provides as well as the cost efficiency solutions compared to its global competitors" the report added. India aims to increase domestic defence turnover to Rs 3 lac crore by 2029, Rs 500 billion targeted for exports. This growth will help reduce the Government of India's import bill as India remains the world's largest importer of defence equipment. Under the Atmanirbhar Bharat initiative of the government, 75 per cent of the defence capital outlay is now reserved for domestic players, up from 49 per cent in FY21. Given the geopolitical challenges and modernisation needs of its Armed Forces, the report added that India plans to invest Rs 8.3 lac crore in domestic procurement, offering substantial business opportunities for local companies. "India intends to place orders worth INR 8.3 trn through domestic procurement and thus it presents a massive business opportunity for local players" it added. As per the Ministry of Defence, India's defence manufacturing sector has witnessed an increase of 16.8 per cent in the fiscal year 2023-24. This significant increase marks the highest-ever growth in the country's defence production value. The total value of defence production reached Rs 1,26,887 crore this year, up from the previous year's figures.

India's defence exports surge to Rs 210 billion after global shift towards China+1, Russia-Ukraine war: Report

To expand the domestic <keyword id="2377476" type="PERSON" weightage="20" keywordseo="defence-manufacturing">defence manufacturing</keyword> ecosystem, a negative list of weapons and platforms would be notified with year-wise timelines for placing an embargo on import of such items from those dates. As per the draft <keyword id="9695994" type="UNKNOWN" weightage="20" keywordseo="defence-production-and-export-promotion-policy">Defence Production and Export Promotion Policy</keyword> (DPEPP 2020) announced on Monday, this list would be updated periodically, without compromising on the operational requirements of the Services, to allow lead-time to industry to prepare itself for any such procurement which is likely to come up, subsequent to the indicated embargo date. The policy proposes a Technology Assessment Cell (TAC) in coordination with the services, which would assess the industrial capability for design, development and production including re-engineering for production of various major systems like <keyword id="386104" type="PERSON" weightage="20" keywordseo="Armoured-Vehicles">armoured vehicles</keyword>, <keyword id="117400" type="PERSON" weightage="20" keywordseo="Submarines">submarines</keyword>, fighter aircraft, <keyword id="54022" type="PERSON" weightage="20" keywordseo="helicopters">helicopters</keyword>, radars with the major industries in the country. A Project Management Unit (PMU), with representation from the Services, would be set up to support the acquisition process and facilitate management of the contracts. This setup would bring in expertise to the process of acquisition as well as create focus and synergy in building military capabilities. With self- reliance as the motto, aim is to move away from licensed production to Design, Develop and produce wherein the Nation owns the Design Rights and IP of the systems. "Our Armed forces have over the years acquired a range of platforms from diverse sources leading to a buildup of spares and consumables which has resulted in sub-optimal planning and resource allocation. Efforts would be made to adopt a family of weapons approach to standardize and optimize inventory and supply chain management," the policy said. In addition, efforts would be made to provide the industry greater visibility into the likely opportunities in the defence sector. Understanding future capital acquisition priorities will enable industry to develop technologies, carry out necessary ground work and position themselves in an optimal manner to compete at the appropriate time. In order to enhance procurement from domestic industry, it is incumbent that procurement is doubled from the current Rs 70,000 crore to Rs 1,40,000 crore by 2025. In order to achieve this objective, it is proposed to carve out a distinct budget head for domestic capital procurement. The policy will also strive for enhancing allocation for domestic capital procurement at the rate of minimum 15 per cent per annum for the next five years. Various studies have over the years brought out the need to enhance cost effectiveness and improve efficiency in the use of MoD's resources. Efforts would be made to scrutinize, evaluate and optimize various items of expenditure in the Defence budget. The policy says that investment promotion would be encouraged to provide specific focus on certain identified segments and technological areas. Investments in aviation sector which help in co-development and strengthening defence ecosystem would be facilitated in association with the Ministry of Civil Aviation. Efforts would be made to address the identified gaps in those segments and offer incentives to global OEMs and domestic industry to set up design and manufacturing facilities in India. The investments in these segments would also be channelized by offering high multipliers through offsets obligations. Development of aero engines complex is a priority area. While significant improvements have been made, there are still critical gaps in the aero engine segment for future development programmes as well as for taking up the engine related MRO activities of the current inventory of platforms. The two Defence Corridors set up in Tamil Nadu and Uttar Pradesh would be specifically targeted by providing additional support as well as by offering higher multipliers for offset discharge for investments flowing into the Defence Corridors. SEE ALSO: <a href="https://www.businessinsider.in/defense/news/draft-defence-policy-aims-to-achieve-1-75-lakh-crore-turnover-by-2025/articleshow/77342252.cms">Draft defence policy aims to achieve ₹1.75 lakh crore turnover by 2025</a> <a href="https://www.businessinsider.in/defense/news/fresh-negotiations-between-military-commanders-from-india-and-china-starts-today-to-end-friction-in-ladakh/articleshow/77311439.cms">Fresh negotiations between military commanders from India and China starts today to end friction in Ladakh</a> <a href="https://www.businessinsider.in/defense/news/comparison-of-indias-rafale-fighter-jets-with-chinese-latest-j-20-fighter-jets/slidelist/77238828.cms">India’s Rafale fighter jets — Here’s how it stacks up against Chinese J-20</a>

India's new defence policy proposes a cell to re-engineer armoured vehicles, submarines, fighter aircraft, helicopters and more

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India's defence exports surge to Rs 210 billion after global shift towards China+1, Russia-Ukraine war: Report

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India's new defence policy proposes a cell to re-engineer armoured vehicles, submarines, fighter aircraft, helicopters and more

IANS

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