Defence Ministry releases DPEP Policy with USD 25 billion turnover by 2025
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New Delhi, Aug 4: In order to become self-reliant in defence manufacturing, the Ministry of Defence (MoD) has formulated a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020). This aims to position India amongst the leading countries of the world in defence and achieving a manufacturing turnover of $25 bn (₹1,75,000 crore) including exports of $5 bn (Rs 35,000 Crore) in aerospace and defence goods and services by 2025.
The MoD stated that to make India amongst the leading countries of the world in the defence sector, including aerospace and naval shipbuilding sectors, from design to production, with the active participation of public and private sector and thus fulfilling the twin objectives of self-reliance and exports.
MoD releases draft Defence Production and Export Promotion Policy 2020 https://t.co/S4hqCO4W80 pic.twitter.com/UX8AVNWC7E
— A. Bharat Bhushan Babu (@SpokespersonMoD) August 3, 2020
"The DPEPP 2020 is envisaged as overarching guiding document of MoD to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports," the statement read. "The share of domestic procurement in overall defence procurement is about 60%. In order to enhance procurement from domestic industry, it is incumbent that procurement is doubled from the current ₹70,000 crores to ₹1,40,000 crore by 2025,” the draft document states," the document read.
The MoD stated the policy that has laid out following goals and objectives:
- To achieve a turnover of Rs 1,75,000 Crores (US$ 25Bn) including export of Rs 35,000 Crore (US$ 5 Billion) in Aerospace and Defence goods and services by 2025.
- 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.
- To reduce dependence on imports and take forward "Make in India" initiatives through domestic design and development.
- To promote the export of defence products and become part of the global defence value chains.
- 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 also brings out multiple strategies under the following focus areas- Procurement Reforms; Indigenization & Support to MSMEs/Startups; Optimize Resource; Allocation; Investment Promotion, FDI & Ease of Doing Business; Innovation and R&D; DPSUs and OFB; Quality Assurance & Testing Infrastructure; Export Promotion.
The Ministry has also asked for public feedback and is seeking inputs/comments from the stakeholders. "Based on the comments received, the policy would be promulgated by the MoD," it stated.