The ‘Make in India’ pitch by PM Modi has attracted a lot of attention and several top notch defence manufacturers have shown interest in setting up a manufacturing unit in India. There has been swift decision making at the top level, especially after the appointment of Manohar Parrikar as the Defence Minister.
The one year of NDA government has not only revived the coal and the telecom sector with their auctions, but has also brought relief to the defense sector, with clearance being given to nearly 40 new defence acquisition proposals, worth over Rs 1 lakh crore. When compared to the UPA’s regime, this is in stark contradiction to the pace with which A K Antony’s department cleared files.
However, there are things which are yet to be sorted out. The defence procurement policy (DPP) is still not formulated. A committee has been appointed with Dhirendra Singh and former MoD director-general of acquisitions Satish Agnihotri as members are looking at DPP. According to media reports, the policy shall be finalised by July.
Institutions like DRDO has been facing the pressure of delivery, as Narendra Modi is personally looking into the defence deals and related manufacturing. The FDI in the sector has also been increased to 49%, which although has not shown major investments from companies, is poised to be game-changer for the sector.