India is yet again working the policy lever to get private players into defence production. Will it work?
Private defence business gets one more nudge BENGALURU : From 1 October, India moves into a new regime for defence systems production and acquisition. Under the larger ambit of the government’s Atmanirbhar Bharat tilt, the new policy seeks to ensure self-reliance in defence manufacturing. Along with recommendations to streamline defence procurement, the policy sets several ambitious production targets, including an annual turnover of ₹1.75 trillion and exports of ₹35,000 crore in aerospace and defence goods and services by 2025. In 2018-19, India’s total defence production was ₹80,558 crore and exports ₹8,320 crore. In other words, the government wants to double domestic production in defence and quadruple exports by 2025. It’s using the policy lever to give the Indian private sector a larger business landscape. Indian companies, which have seen many a false dawn in the defence sector, are latching on to it, saying the right things, initiating plans and doing the odd deal. A report released this week by the auditor to the governme…
