The defence ministry has come out with a draft policy. The policy envisages achieving a turnover of Rs 1,70,000 crore in military goods and services by 2025 by promoting the domestic defence industry.
The policy aims to make India one of the top five manufacturers of defence platforms with active participation of public and private sectors.
The policy lists as a major aim achieving export of Rs 35,000 crore in military equipment and services by 2025 by promoting the domestic defence industry.
The policy aims to make licensing process for defence industries liberal and the listing of items requiring licences will be reviewed.
The policy aims to make India self-reliant in defence production as well as fulfil demand of other friendly countries. The government identified 12 military platforms and weapons systems for production in India to achieve the aim of “self-reliance”. They are fighter aircraft, medium lift and utility helicopters, warships, land combat vehicles, missile systems, gun systems, small arms, ammunition and explosives, surveillance systems, electronic warfare (EW) systems and night fighting enablers, among others.
According to the policy the tax regime will be rationalised to make domestic manufacturing attractive by ensuring that there is no tax inversion. Taxes on import of capital goods and services, inputs and components used in defence production will be rationalised.
The policy aims to make taxes on import of capital goods and services, inputs and components used in defence production rational.