India to achieve $26 bn defence industry: Rajnath Singh

Minister of defence Rajnath Singh has said the government is committed to work towards achieving a $26 billion defence industry by 2025.

He said that the defense production policy reflects the resolve of the government to achieve $26 billion defence industry with an anticipated investment of $10 billion in aerospace and defence goods and services by 2025. This will also provide employment to about 2-3 million people.

Rajnath Singh said that simplification of procedures for defence exports has resulted in export of Rs. 10,745 crore in 2018-19, which is nearly seven times the export achieved in 2016-17 and a target of $5 billion for exports has been set till 2024.

Rajnath Singh said that the government has simplified industry licensing process, increased FDI cap and taken necessary steps to promote defence exports and the defence offset policy has been streamlined and government owned trial and testing facility has been provided to private sector.

Elaborating the government’s initiatives to promote startups and MSMEs, the minister said that at present over 8,000 MSMEs are engaged in defence production and efforts are on to double this figure to 16,000.

Under the “Make” procedure, till date 40 industry development proposals have been given in principle approval. Eight such projects would have an estimated value of Rs. 2,000 Crore in next five years. As against 215 defence licenses issued till 2014, the number of defence licenses issued went up to 440 by March 2019.

Rajnath Singh said that a road map has been prepared to promote AI in national security to make India a significant power in defence AI and to develop 25 defence specific AI products by 2024.

 

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