New defence production policy

The centre has prepared a draft Defence Production Policy, 2018, which envisages a focused, thrust to the development of defence design and production capabilities in the country. 

In the Budget Speech 2018, the government announced that it will bring out an industry-friendly Defence Production Policy, 2018, to promote domestic production by public sector, private sector and micro, small and medium enterprises (MSMEs).  
The draft of the policy has been shared with concerned stakeholders for their views before it is notified..
The salient features of the draft policy, which is already placed in the public domain for consultation with stakeholders is: 
  • Creation of a dynamic, robust and competitive defence and aerospace industry as an important part of the ‘Make in India’ initiative.
  • Creation of a tiered defence industrial ecosystem in the country.
  • Reducing current dependence on imports and strive to achieve self-reliance in development and manufacture of weapon systems / platforms.
The Policy mandates transfer of technology and / or enhanced foreign direct investment (FDI) for domestic production in the event of non-availability of manufacturing capabilities in the country.
The policy envisages that the Ordnance Factory Board should focus on system integration, design and development, and actively engage domestic vendors in the private sector for other assembly work.