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Posted 27 Feb 2024

Updated 27 Mar 2024

2 min read

  • It is opened in the Defence Industrial Corridors (DICs) of UP.
    • the other defence corridor is in Tamil Nadu.
  • The Defence Industry sector was opened up to 100% for Indian private sector participation in 2001. 

 

  • Need for privatisation of the Defence sector:
    • India is third largest military spender(after US and China) and the world's largest arms importer, Stockholm International Peace Research Institute (SIPRI) Report.
    • The share of the defence budget can be reduced which stands at 13.04% of the total government expenditure. 
    • Surplus production will boost defence exports and would help to achieve the set target of 35000 crore of exports by 2024-25.

 

  • Concerns: security concerns like protection of sensitive data at the hands of private companies; selling weapons to customers who are not aligned with India’s national interest; etc.

 

  • Government steps for promotion of indigenous Defence Production:
    • Priority to the procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020.
    • Liberalization of Foreign Direct Investment(FDI) policy by allowing 74% FDI under automatic route.
    • The launch of the Innovations for Defence Excellence (iDEX) scheme.
    • The SRIJAN portal to facilitate indigenisation by Indian Industry including MSMEs.

Related News: SAMAR (System for Advance Manufacturing Assessment and Rating) certification

  • The Defence Research and Development Organisation(DRDO) handed over SAMAR assessment certificates to nine Industry Partners.

 

  • About SAMAR

    • It is a benchmark to measure the competency of defence manufacturing enterprises.
    •  It is based on a maturity assessment model developed by the Quality Council of India (QCI)
    • Applicability: to all defence manufacturing enterprises.
    • Validity: 2 years.
    • It’s an outcome of the collaboration between DRDO and QCI.
  • Tags :
  • Defence Industrial Corridors
  • Privatisation of the Defence sector
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