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Govt eyeing turnover of Rs 1.75 lakh crore in defence manufacturing by 2025
Aug-04-2020

A draft of a major policy prepared by the defence ministry stated that the government has identified the defence sector as a potential driver to boost the overall economy and is eyeing a turnover of Rs 1.75 lakh crore ($25 billion) in defence manufacturing by 2025. The draft Defence Production and Export Promotion Policy 2020 set an export target of Rs 35,000 crore ($5 billion) in aerospace and defence goods and services in the next five years, which has been estimated as part of the total projected turnover.

The policy is envisaged as overarching guiding document of the defence ministry to provide a ‘focused, structured and significant’ thrust to production of military hardware and platforms for self-reliance and exports. The policy is aimed at developing a dynamic, robust and competitive defence industry, including aerospace and naval shipbuilding, to cater to the needs of the armed forces.

The draft Defence Production and Export Promotion Policy (DPEPP) also prescribed a framework to reduce dependence on imports and take forward the ‘Make in India’ initiatives through domestic design and development. It also suggested steps to promote export of defence products to make India become part of the global defence supply chain. The policy paper made several key recommendations to boost defence manufacturing so that the sector compliments the government's aim make the country's economy a $5 trillion by 2024.

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