The 'AatmaNirbhar Bharat' initiative has emerged as a crucial player in reshaping India's defence production landscape. Its primary objective is to significantly diminish India's dependency on imports by fostering indigenous manufacturing capabilities. This initiative strives to establish a self-sufficient ecosystem for producing essential defence systems, equipment, and services.
Cutting down on import reliance is vital for enhancing India's strategic autonomy. It not only lowers the costs associated with importing defence equipment but also stimulates the domestic industry, which can lead to job creation and bolster economic growth.
The Positive Indigenisation List holds substantial significance as it comprises items that are deemed strategically important for India's defence sector. The aim is to produce these items within the country, and imports beyond specified timelines for these items are restricted, thereby promoting indigenous production.
In India, the procurement of defence-related equipment is regulated by the Defence Acquisition Procedure (DAP). The DAP 2020 emphasizes categories of defence procurement that are indigenously designed, developed, and manufactured, prioritizing the local industry.
The 'offsets' clause is a critical component of defence contracts. It mandates that foreign defence companies, upon winning contracts, must reinvest a portion of the contract value back into the Indian defence sector. This approach promotes technology transfer and enhances indigenous manufacturing capabilities.
The government actively supports startups within the defence sector through the 'Innovations for Defence Excellence' (iDEX) framework. This initiative provides grants aimed at developing high-end solutions, including projects that incorporate Artificial Intelligence (AI).
India is focused on promoting defence exports to advance indigenisation efforts. The government supports the export of military hardware to friendly nations, which has led to notable growth in defence exports in recent years. Policies have been put in place to sustain this upward trend.
The DRDO plays a pivotal role in engaging the Indian industry as Development cum Production Partners. It offers its technology at nominal costs and facilitates the research and development of defence technologies through schemes like the Technology Development Fund (TDF).
The corporatisation of Ordnance Factory Boards (OFBs) is aimed at enhancing efficiency, transparency, and accountability in the functioning of these units. This move is expected to improve their capacity to produce advanced technology and equipment tailored to the needs of the Indian armed forces.
India's defence export landscape has witnessed remarkable evolution, with exports increasing sixfold between 2017 and 2021. This growth is supported by favorable policies aimed at promoting the export of military hardware to allied nations.
Through these efforts, the AatmaNirbhar Bharat initiative is paving the way for a robust and self-reliant defence production ecosystem in India.
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