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Strengthening Ties: India-Australia Partnership



  Dec 25, 2023

"Indigenisation of Defence Production Towards AatmaNirbhar Bharat"



Q1: What is the objective of the 'AatmaNirbhar Bharat' initiative in the context of defence production?

Answer: The objective of the 'AatmaNirbhar Bharat' initiative in defence production is to reduce India's reliance on imports, promote indigenous manufacturing, and establish a self-sufficient ecosystem for the production of defence systems, equipment, and services.

Q2: Why is reducing reliance on imports important for India's defence sector?

Answer: Reducing reliance on imports is important to enhance India's strategic autonomy, reduce costs associated with importing defence equipment, and promote the growth of domestic industry, which can create jobs and boost economic growth.

Q3: What is the significance of the Positive Indigenisation List?

Answer: The Positive Indigenisation List includes items that are considered strategically important for the defence sector, and India aims to produce them domestically. Import beyond the indicated timelines for these items is embargoed, promoting indigenous production.

Q4: How is the procurement of defence-related equipment governed in India?

Answer: The procurement of defence-related equipment in India is governed by the Defence Acquisition Procedure (DAP). DAP 2020 prioritizes indigenously designed, developed, and manufactured categories of defence procurement.

Q5: What is the 'offsets' clause in defence contracts?

Answer: The 'offsets' clause requires foreign defence companies that win contracts to invest a portion of the contract value back into the Indian defence industry. This promotes technology transfer and indigenous manufacturing capabilities.

Q6: How is the government supporting startups in the defence sector?

Answer: The government supports startups in the defence sector through the 'Innovations for Defence Excellence' (iDEX) framework, which provides grants for the development of high-end solutions, including projects related to Artificial Intelligence (AI).

Q7: What are the key initiatives to promote defence exports from India?

Answer: India promotes defence exports to fuel indigenisation by supporting the export of military hardware to friendly foreign countries. Recent years have seen significant growth in defence exports, and policies support this trend.

Q8: What is the role of the Defence Research and Development Organisation (DRDO) in defence production?

Answer: DRDO plays a role in involving the Indian industry as Development cum Production Partners, offering its technology at nominal cost, and facilitating research and development of defence technologies through schemes like the Technology Development Fund (TDF).

Q9: What is the significance of the corporatisation of Ordnance Factory Boards (OFBs)?

Answer: The corporatisation of OFBs aims to bring greater efficiency, transparency, and accountability to the functioning of the new units, enhancing their capability to produce advanced technology and equipment as per the requirement of Indian armed forces.

Q10: How has India's defence export landscape evolved in recent years?

Answer: India's defence exports have seen significant growth, with a sixfold increase between 2017 and 2021. This growth is backed by policies to support the export of military hardware to friendly foreign countries.

These FAQs provide an overview of key aspects related to the indigenisation of defence production in India.


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