Defence exports Current Affairs - 2020

Defence Testing Infrastructure Scheme approved

On May 15, 2020, Defence Testing Infrastructure Scheme was approved by the Defence Minister Raj Nath Singh. The scheme is to be implemented at an estimated amount of Rs 400 crores.

Highlights

The Defence Research Development Organization and the 41 ordinance factories in the country have created testing facilities for ammunition, firearms, radar and electronic arms at the expense of GoI.

This will help in promoting indigenous defence capacities of the country especially amongst MSMEs (Micro, Small and Medium Enterprises) and startups.

About the Testing Facilities

The testing Facilities will be used to test UAVs (Unmanned Vehicles), radars, drones, rubber testing, telecom equipment testing, shock testing, noise testing, ship motion testing, blast testing, environment test facilities testing, etc.

What is the plan?

Under the scheme, over six to eight test facilities are to be brought in the country. 75% of the cost to set up these facilities will be born by the Central Government. The rest of 25% is to come through private entities and the state government.

Defence Industrial Corridors

There are two main industrial corridors in India. They are in Uttar Pradesh and Tamil Nadu. The testing centres will also help these industries to test their products.

Defence Exports

The scheme will also help to aid India’s Defence Export targets. During the Defexpo 2020, India had set a target of boosting defence exports to 5 billion USD in next five years.

Land Acquired from Tamil Nadu and Uttar Pradesh Defence Corridors to increase Defence Production

On March 23, 2020, the Defence Ministry announced in the Parliament that it has acquired land from the State Governments of Uttar Pradesh and Tamil Nadu. As Land is state subject, it is important for the centre to acquire land from the state government for development projects.

Highlights

The GoI is planning to increase Defence Exports to 5 billion USD in next five years. In order to achieve this, the Government is expanding its investment opportunities. Thus, it has acquired land from the state governments in their respective defence corridors. The land acquired from Tamil Nadu so far is 1,182 hectares and from Uttar Pradesh is 1,537 hectares.

Policy initiatives in Defence Manufacturing

The GoI has taken several initiatives to increase manufacturing in Defence Sector. They are as follows

  • The “Strategic Partnership” Model was introduced where the manufacturers shall make partnerships with Indian Entities and set up manufacturing units through technology transfers
  • The FDI policy was revised for the defence sector where 100% investment is now allowed through Government route
  • Defence Investor Cell was created to address the issues related to investments and its related regulatory measures.