![]() It is estimated, according to SIPRI, their combined sales were $7.5 billion in 2017, representing a 6.1% jump from 2016.Īll four of these companies are public sector enterprises and account for the bulk of the domestic armament demand. The growing share of SMEs in the defence market: Small and Medium Enterprises (SMEs) until 2016 accounted for a 17.5% share of the Indian defence market.Īccording to the government of India data for the financial year 2018-19, the three armed services for their combined capital and revenue expenditures sourced 54% of their defence equipment from Indian industry.įour companies among the top 100: Among arms producers, India has four companies among the top 100 biggest arms producers of the world. Technology transfer to private companies: In addition, the government has also introduced provisions in the DPP that make private industry production agencies and partners for technology transfers. It created a new procurement category in the revised DPP of 2016 dubbed ‘ Buy Indian Indigenously Designed, Developed and Manufactured’ (IDDM).Įarmarking projects for MSMEs: The ‘Make’ procedure has undergone simplification “earmarking projects not exceeding ten crores” that are government-funded and ?3 crores for Micro, Small and Medium Enterprises (MSMEs) that are industry-funded. Make in India initiative: The first is the ‘Make in India’ initiative, as part of which a number of components from Indian private and public sector enterprises have been prioritised by the government.ĭelay by vendors in supplying equipment: The second set of factors is extraneous to India in the form of delays in supplying equipment by vendors and the outright cancellation of contracts by the Indian government or at least a diminution of existing contracts.ĭPP’s measures to build India’s defence industry: Under the ‘Make in India’ initiative, the Defence Procurement Procedure (DPP) lays out the terms, regulations and requirements for defence acquisitions as well as the measures necessary for building India’s defence industry. What are the factors responsible for the shift? ![]() Based on the latest estimates released by the Stockholm International Peace Research Institute (SIPRI) in the period between 2009-18, Indian defence imports fell even as exports increased.
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