$5 Trillion In The Next 5 Years

 Written by: Ashi Chaturvedi 

Edited by: Yashi Shah

Defence Production and Export Promotion Policy, 2020

India's Defence supremacy is hidden to no one. India is one of the most lucrative markets for Defence majors. Our country is on number 2 in “Top 6 Arms Importers” with a 9.5% share in the global arms trade market. But being 2nd largest importer is not sufficient. It affects the economy of any developing country to import its necessities more than export. For a long time, India wanted to minimize its import of arms and maximize export. This clay of dreams started to take its shape when on 6 Feb, PM Modi said “We are going to set a target of $5 Trillion in next 5 years with the help of Defence Export.” 

Following this statement, in March, India ranked 23rd in “Top 25 Arms Exporters” for the first time in history. This became a real motivation for India to move further. Now, India sets its eyes on Rs. 1.75 L. Cr. Turnover in defence manufacturing. 

To accomplish the target, India has drafted the Defence Production and Export Promotion Policy, 2020. This draft guides the production of military hardware and platforms for self-reliant and exerts for a “ focused, structured and significant” thrust. The objectives of this draft are:

• To achieve a target of Rs. 35000 Cr. from Aerospace sector only and Rs. 1.75 L Cr net.
• To boost up the local participation in Defence Production under the Make in India program as this policy is also a part of the Atma-Nirbhar Bharat initiative. 
• To focus on MSMEs/start-ups, optimization of resource allocation, ease of doing business, FDI investment promotion, R&D and export promotion, etc. 
• 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.

The officials said in an agency report that this policy complements India's ambition of an economy of $5 trillion. Some Defence Experts call it ‘Strategic Policy’ as it will help to modernize our arm forces as India is facing a ‘two sides’ threat from Pakistan and Chinese borders. Well, whether it is a ‘Strategic Policy’ or not but by this initiative, the shoulders of our army shall be equipped and the stomachs of locals shall be filled.