The "Make in India" initiative has led to several specific policy reforms aimed at bolstering the domestic defence industry. Here are the key reforms introduced:

1. Positive Indigenisation Lists (PILs)

The Ministry of Defence has published Positive Indigenization Lists that prohibit the import of certain defence items, mandating their procurement exclusively from domestic manufacturers. This includes a wide range of equipment such as advanced weapon systems, artillery, and UAVs, which are crucial for enhancing indigenous capabilities.

2. Defence Acquisition Procedure (DAP) Reforms

The 2023 amendments to the DAP introduced several changes to streamline procurement processes and promote indigenous production:

Increased Indigenous Content: The minimum indigenous content requirement for various procurement categories has been raised, reinforcing the focus on local manufacturing.

Simplified Make-II Process: The Make-II category for industry-funded projects has been simplified, reducing approval timelines to accelerate development.

Support for Start-Ups and MSMEs: Specific measures have been implemented to fast-track approvals for start-ups and MSMEs, encouraging innovation and participation in defence R&D.

3. Foreign Direct Investment (FDI) Policy

The FDI policy has been liberalized to allow up to 74% FDI under the automatic route and 100% with government approval in the defence sector. This change aims to attract foreign investment and technology transfer, fostering collaboration between Indian firms and global defence manufacturers.

4. Defence Industrial Corridors

The establishment of two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu is intended to create a conducive environment for defence manufacturing by providing infrastructure and facilitating investment from private players.

5. Innovations For Defence Excellence (iDEX)

The iDEX initiative promotes innovation by engaging start-ups and MSMEs in defence projects. It provides a platform for these entities to contribute to R&D efforts, thereby accelerating the development of cutting-edge technologies.

6. Reforms In Offset Policy

Reforms have been made to the offset policy under DAP 2020, which incentivizes foreign companies to invest in Indian defence manufacturing through technology transfer and local production commitments. This includes increasing the value of incentive multipliers for critical technology transfers.

7. Digitalisation of Procurement Processes

The digitisation of procurement processes aims to enhance transparency and efficiency within the defence acquisition lifecycle, reducing bureaucratic delays and improving overall operational effectiveness.

Conclusion

These reforms collectively support the "Make in India" initiative by promoting indigenous design, development, and production of defence equipment. The focus on self-reliance not only strengthens India's military capabilities but also positions it as a competitive player in the global defence market. As these policies continue to evolve, they are expected to further stimulate growth in India's defence sector and enhance its strategic autonomy.

IDN