The Indian Defence sector, the second largest armed force is at the cusp of revolution. The Government has identified the Defence and Aerospace sector as a focus area for the ‘Aatmanirbhar Bharat’ or Self-Reliant India initiative, with a formidable push on the establishment of indigenous manufacturing infrastructure supported by a requisite research and development ecosystem.
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25 % of defence R&D budget has been earmarked for private industry and start-ups which will pave the way for innovation of new defence technologies in India |
FDI in the defence sector is allowed up to 74% through automatic route (from earlier 49%) for companies seeking new industrial licenses. FDI beyond 74% and up to 100% will be permitted under the Government route |
India’s defence production rose more than 12% last fiscal year and crossed the 1 trillion rupee ($12 billion) threshold for the first time, as the country tries to reduce its reliance on imports from countries such as Russia. The value of India’s local defence production jumped to 1.07 trillion rupees in the year that ended on March 31 and was expected to rise further |
DRDO Military use products available for export . India’s defence exports have risen too, jumping 24% to about 160 billion rupees last fiscal year, according to government data. |
Defence Production Investment Promotion Policy |
Special concession for allotment of Government land |
Special incentive for establishment of units |
capital subsidy forestablishing basic infrastructure of electricity, water and road on undeveloped land. |
Technical assistance/support |
Special support for units established in joint collaboration with public enterprises of defence sector/Units under the Ministry of Defence |
Enhancement of funding under the Technology Development Fund (TDF) scheme of the Ministry of Defence to INR 50 crore per project |
Department of Defence Production waives off Quality Assurance Charges which would make the defence products cost competitive in global market |
How can we help |
We at PPIPL identify the eligible project for Design, Development and Manufacturing the advanced defence Systems & Sub Systems as per approved list by DRDO and facilitate successful joint ventures (JV) and provide offset structuring, tax and regulatory services, transaction and implementation support. |