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Defence Production Policy To Make India A Major Defence Manufacturing Hub

bhagat

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Dec 29, 2010
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The new Defence Production Policy would be instrumental in harnessing the combined skills of public and private sector in India, with the aim of achieving self reliance in defence production
The new Defence Production Policy would be instrumental in harnessing the combined skills of public and private sector in India, with the aim of achieving self reliance in defence production. This could herald an era of unprecedented defence industrial growth in India.

There are huge opportunities for growth within the domestic and global defence & aerospace industries and this policy would help India to enhance its dependence for defence products on indigenous sources and reduce its heavy dependence on imports, currently amounting to about 70% of defence expenditure.

The mandate to enhance potential of SMEs in indigenization of defence production as well as to broaden the defence R&D base of the country is a much-awaited announcement, as worldwide, the global OEMs work in close coordination with SMEs. Small and Medium Enterprises offer the advantage of innovative capabilities in niche manufacturing with greater flexibility, lower overhead costs and the ability to learn and absorb new technologies.

The private sector hails the announcement and companies are all ready to set up funds to support R&D for defence equipment, systems, and cutting edge technologies that could provide the required encouragement to the defence industry, especially SMEs to invest and develop the sector.


The Indian industry is enthused and is very optimistic about it's potential to play a significantly larger role in contributing to the total defence-related production both within the country, as well as export markets. India's defence spending has grown manifold to INR 1,420 bn in 2009-10, of which 40 per cent relates to capital expenditure. Though the Government of India allowed 100 per cent private participation in the defence sector in 2000, it is only now after a decade that the Defence Minister through this policy has clearly laid down the role of private sector in defence production to achieve substantive self-reliance in the design, development and production of equipment and weapon systems.

The policy has emphasized the conditions conducive for the private industry to take an active role in defence production. The issues impacting the competitiveness of Indian defence industry in comparison to foreign companies will also be duly addressed and necessary preferences will be given to indigenous development and manufacturing of defence equipment through this policy.

The transfer of critical foreign technology to India is essential for realizing our goal of self-sufficiency in defence production. Receipt of technology assets under major procurement is currently the exclusive remit of DPSUs. Hence, it is important that DPSUs necessarily partner with SMEs and help the development of indigenous ancillary industry in India.

In the wake of the thrust on indigenous manufacturing, the government may also consider relaxing the cap on FDI in the defence sector to 50 per cent to make it more attractive for the foreign OEMs to part with critical technologies and invest in the growing Indian defence market.
 

GUNS-N- ROSES

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Nov 23, 2010
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we have to carry out long term investments in private sectors. tatas, mahindras and godrejs have taken steps to establish private defence industry in india. our armed forces have to support them whole heartedly. even if the weapons/equipments they develop are lil inferior to foreign companies, i say we still go for them. remember boeing, lockeed martin were not built in a single day. it took considerable time for them to establish as major players.
 

Capt.Popeye

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Apr 5, 2010
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The new Defence Production Policy would be instrumental in harnessing the combined skills of public and private sector in India, with the aim of achieving self reliance in defence production
The new Defence Production Policy would be instrumental in harnessing the combined skills of public and private sector in India, with the aim of achieving self reliance in defence production. This could herald an era of unprecedented defence industrial growth in India.

There are huge opportunities for growth within the domestic and global defence & aerospace industries and this policy would help India to enhance its dependence for defence products on indigenous sources and reduce its heavy dependence on imports, currently amounting to about 70% of defence expenditure.

The mandate to enhance potential of SMEs in indigenization of defence production as well as to broaden the defence R&D base of the country is a much-awaited announcement, as worldwide, the global OEMs work in close coordination with SMEs. Small and Medium Enterprises offer the advantage of innovative capabilities in niche manufacturing with greater flexibility, lower overhead costs and the ability to learn and absorb new technologies.

The private sector hails the announcement and companies are all ready to set up funds to support R&D for defence equipment, systems, and cutting edge technologies that could provide the required encouragement to the defence industry, especially SMEs to invest and develop the sector.


The Indian industry is enthused and is very optimistic about it's potential to play a significantly larger role in contributing to the total defence-related production both within the country, as well as export markets. India's defence spending has grown manifold to INR 1,420 bn in 2009-10, of which 40 per cent relates to capital expenditure. Though the Government of India allowed 100 per cent private participation in the defence sector in 2000, it is only now after a decade that the Defence Minister through this policy has clearly laid down the role of private sector in defence production to achieve substantive self-reliance in the design, development and production of equipment and weapon systems.

The policy has emphasized the conditions conducive for the private industry to take an active role in defence production. The issues impacting the competitiveness of Indian defence industry in comparison to foreign companies will also be duly addressed and necessary preferences will be given to indigenous development and manufacturing of defence equipment through this policy.

The transfer of critical foreign technology to India is essential for realizing our goal of self-sufficiency in defence production. Receipt of technology assets under major procurement is currently the exclusive remit of DPSUs. Hence, it is important that DPSUs necessarily partner with SMEs and help the development of indigenous ancillary industry in India.

In the wake of the thrust on indigenous manufacturing, the government may also consider relaxing the cap on FDI in the defence sector to 50 per cent to make it more attractive for the foreign OEMs to part with critical technologies and invest in the growing Indian defence market.
About time that this kind of policy came through. And it has to be seen as part of "industrial policy" rather than as "defence production policy" The fact that FICCI, CII and other industrial bodies have set up their cells and think-tanks to this end will be a great help in actualising this policy. In the old days when Homi Bhabha was setting up the DAE, a lot of work needed to be done to build within the country. For this, there was no policy, little technology and even less interest. Bhabha with his connections to industry (and Tata) managed to enthuse a few individuals to get involved. Among them, e.g. Larsen and Toubro worked hard and benefited in the form of acquiring cutting edge technology which made them industrial giants. But that pattern was random and sporadic.

Now making it a part of "industrial policy" will ensure that a huge chunk of industry will be able to develop and deliver superior technology applicable to all areas; not necessarily confined to defence production.

For example, if RIL were to invest in to composites technology. It will be an adjunct to their existing areas of expertise, they already possess the threshold of tech. required, and have deep pockets to fund R & D; they will be able to spin-off that tech. to other fields.

So it can be win-win for all concerned while achieving the primary aim of self-reliance.
About time it happens.
 

nomi007

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Jan 11, 2010
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self-reliance as the dream of Indian's 1st prime minister
that had not be completed in his life
 

kriish

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Jan 16, 2011
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self-reliance as the dream of Indian's 1st prime minister
that had not be completed in his life
well our EX President Dr APJ Abdul kalam has asked us to dream and achieve our dreams........... Do u know the difference between animals (a dog, a pig, a donkey ) and Humans ............. Only humans can dream and achieve the dreams.......... not those dogs and pigs......... at least we have dreams to be great unlike u the one liner............
 

kriish

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Jan 16, 2011
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so.... what is the value ($) of indian arms/defence-related exports?
u cant except a fruit as soon as u plant a seedling.......... u need to let it grow by watering it and caring for it and only after that we can except the fruit.............. so hold ur horses in the 1st quarter of this century we can see the results...................
 

truthseeker2010

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Dec 7, 2010
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Recently announced Defence Production Policy 2011 (DPP) is no more than another New Year resolution which is sure to be forgotten soon. India have been endeavoring to achieve self-reliance in defence items for many decades now–but have not been able to get over the lure of the foreign.
 

boris

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Jan 19, 2011
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so.... what is the value ($) of indian arms/defence-related exports?
in all honesty ,as a gun enthusiast i will say as far as guns are concerned of indian ordinance factory(IOF) and this what me and members of a guns forum believe is that they make us puke:hang2:

in early 60's they tried to copy the FN-FAL without any license and TOT and the firm FN herstale literally kicked IOF's behind.

their INSAS wasnt that great at first it has got a little better now but i wont say it is good. nepal was unhappy with the first stock they got.
i once heard from a fellow gun lover that the police when they used IOF made 9mm ammo on a glock 17 they weapon wasnt firing even close to when foreign made ammo was used.you can connect the dots here.

i like america's system of letting private firms do the R&D and if they live up to the expectations then the army will use them.The recent trend being firms doing most of the work for special forces,firms like LWRC,alexander arms,H&K(germany) and barrett have produced stunning guns like:

1)lwrc PSD(6.8 mm)
2)alexander arms 6.5 grendel
3)barett REC7(6.8mm)
4)LWRC M6A1,M6A2
5)LWRC SABR(NATO 7.62)this is an assault rifle which when converted with a longer barrel can be then used as a sniper rifle damn good weapon.
6)accuracy international AS50 .50 caliber sniper rifle
7)knights armament M110 sniper rifle
8)remington modular sniper rifle.
9)H&K 416(some delta operators and rangers operators are using it)

these are what US spec ops have loved trying and induction might be on.LWRC,barett have proper ranges and CQB scenario structures where US special forces try out these weapons as to how they fare.
 

boris

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Jan 19, 2011
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u cant except a fruit as soon as u plant a seedling.......... u need to let it grow by watering it and caring for it and only after that we can except the fruit.............. so hold ur horses in the 1st quarter of this century we can see the results...................
in the indian scenario i do agree with you in foregin M16 too had its fair share of problems.the AK-47 is good but based a lot on the german sturmgeweher.there have been weapons produced by russian's that havent been so liked as the AK and not used much the AO63 comes to my mind which the spetsnaz didnt like as much as the AN94 ,where even that has chances of being replaced by the more accurate AEK-971.

czechs have actually done well with their CZ-75 pistol and VZ 58 assault rifle's.

to those who have an interest in sniper rifles,see the "tsar cannon" rifles made by a private firm in russia,amazing sniper rifles used by the russian secret service and presidential bodyguards.
 

angeldemon_007

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Nov 29, 2010
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Any of these policies won't help until we give some project to our companies. Our govt. raised the hopes of our pvt. industries.

Now when they have spend millions of dollars and set up infrastructures and JV, our govt. has not given any projects to these companies.

We have world class pvt. shipyards but our govt. is not ready to give any projects to them. FICV project was a good initiative but i have not heard about any development in this project.

We could have given our FINSAS completely to the pvt. sector but only a small portion went to them.

If we don't give any project to our companies, they won't survive long. I don't know, if govt. didn't wanted to give any projects to our pvt. companies then why did they open defense for them ??/
 

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