The defense sector in India has been thriving for several reasons, including: Increased defense spending: Over the last few years, the Indian government has been increasing its defense spending to modernize its armed forces. This has created a favorable environment for the defense sector to grow.
The defense sector in India has been thriving for several reasons, including:
Increased defense spending: Over the last few years, the Indian government has been increasing its defense spending to modernize its armed forces. This has created a favorable environment for the defense sector to grow.
Make in India initiative: The government's Make in India initiative aims to encourage domestic production and manufacturing of defense equipment, leading to the growth of the defense sector in the country.
Strategic location: India's strategic location in South Asia makes it a critical player in the region. This has resulted in increased demand for defense equipment from neighboring countries, creating opportunities for the Indian defense sector.
Skilled workforce: India has a large pool of skilled engineers, scientists, and technicians who can contribute to the development and production of defense equipment.
Technology transfer agreements: Many foreign defense companies have entered into technology transfer agreements with Indian companies, which has helped in the development of indigenous defense capabilities.
Geopolitical tensions: The geopolitical tensions in the region have resulted in increased demand for defense equipment, providing a boost to the Indian defense sector.
Overall, these factors have contributed to the thriving defense sector in India, which is expected to continue to grow in the coming years.
Recently in an update about indigenisation of Line Replacement Units (LRUs)/subsystems/spares & components for DPSUs,Department of Defence Production (DDP) of Ministry of Defence (MoD) has notified that, a total of 2736 these items have been indigenised so far out of 2958 items notified through first two PILs (positive indigenisation lists) that were to be indigenised by December 2022.
The total import substitution value of these 2736 items was at | 2570 crore. So far, 4666 items have been notified by MoD for indigenisation through four PILs (positive indigenisation lists) - first PIL - 2,851,second PIL – 107, third PIL – 780, fourth PIL - 928).
Measuring the Impact -
Though these LRUs/spares/components (used in manufacturing of defence platformslike fighter jets, warships, submarines,missiles, combat vehicles etc.) are not high value items, the indigenisation of these items would help defence PSUs (like Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Mazagon Dock, Cochin Shipyard, Garden Reach, Mishra Dhatu Nigam) in terms of faster execution of their contracts as the supply chain would improve significantly through local sourcing of these items.
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