Union Government de-licensed manufacturing of defence items
India’s Union Ministry of Commerce and Industry de-licensed manufacturing of defence items. Around 55% of the defence items have been removed from the mandatory licensing list.
There is now a smaller negative list of defence items in which compulsory licensing is still required. This includes items such as tanks, vehicles fitted with military mountings of arms and ammunition or with equipment for mine laying, defence aircraft, including helicopters, UAVs and warships.
The decision is expected to generate interest of private companies like Tata, Mahindra and Larsen & Toubro as they will no longer require a license to manufacture components, castings and sub-assembly.
The primary motive of easing private sector participation is to tap available expertise in the private sector towards realizing self-reliance in the area of defence equipment production. Private sector participation will also raise the employment opportunities.