Aiming at USD 25Bn Turnover by 2025, Defence Production and Export Policy Draft Released

The policy also stresses reducing dependence on imports and taking forward “Make in India” initiatives through domestic design and development

The Ministry of Defence (MoD) on 3 August 2020 released draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020) with an objective of achieving a turnover of Rs 1,75,000 Crores (USD 25Bn) including export of Rs 35,000 Crore (USD 5 Billion) in Aerospace and Defence goods and services by 2025.

In order to provide impetus to self-reliance in defence manufacturing, multiple announcements were made under ‘Atmanirbhar Bharat Package’.

An official note issued by the MoD states, “In implementing such framework and to position India amongst the leading countries of the world in defence and aerospace sectors, Ministry of Defence (MoD) has formulated a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020). The DPEPP 2020 is envisaged as overarching guiding document of MoD to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports.”

Some of the additional goals laid out by the the policy are as follows:

  • To develop a dynamic, robust and competitive Defence industry, including Aerospace and Naval Shipbuilding industry to cater to the needs of Armed forces with quality products.
  • To reduce dependence on imports and take forward “Make in India” initiatives through domestic design and development.
  • To promote export of defence products and become part of the global defence value chains.
  • To create an environment that encourages R&D, rewards innovation, creates Indian IP ownership and promotes a robust and self-reliant defence industry.

The Policy brings out multiple strategies under the following focus areas which include procurement reforms, indigenization and support to MSMEs/startups, optimize resource allocation, investment promotion, FDI and ease of doing business, innovation and R&D, DPSUs and OFB, quality assurance and testing infrastructure and export promotion


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