Hello, Warriors, inaugurating the Defence Expo 2016, Defence Minister Manohar Parrikar unveiled Defence Procurement Procedure or DPP, boosting ‘Make in India’. The new Defence Procurement Procedure (DPP) has been put up on the Defence Ministry website.
What is DPP?
The new DPP 2016 is structured to provide the necessary leverage to make adequate investments, build the required capabilities, and match up to the contemporary and futuristic requirements of the Indian armed forces.
DPP will ensure transparency and speed in acquisition process of arms for defence forces from other countries and boost the ‘Make in India’ initiative to reduce dependence on exports. It will also realise India’s target of achieving defence industry network.
Why is DPP Significant?
All countries look to defend their frontiers and those that provide equipment have set up robust manufacturing basis in their respective countries. India has still not been able to achieve what developed countries have in terms of industrial revolution and manufacturing.
DPP can help India in achieving a good defence industry network, for its own needs and exports. The new policy has introduced an Indian Designed, Developed and Manufactured (IDDM) category which will benefit the local units.
The new category IDDM will be the first category of preference under new DPP, which will guide how India buys its arms and equipment for its armed forces. The new DPP also allows the Defence Acquisition Council to take the “fast-track” route to acquire weapons.
Apart from this, Defence export clearances will be granted online.
The policy will also include ‘Start-up India’ initiative as technology is changing every year and India has the capability to use it in defence production.
The new DPP would help India reduce its dependency on foreign countries and source defence equipment within the country.
In wake of this, India has also increased the Foreign Direct Investment (in Defence sector) to 49 per cent which will be through automatic route.
Therefore:
Going forward, we hope to not only manufacture in India, but also design and develop in India for the defence sector. The industries need to work out a model in which ‘Make in India’ happens in the defence sector, with special focus on design and development. We hope that India will become a big exporter for defence equipment soon realising the government’s ‘Make in India’ in the defence sector, encouraging foreign players to eye India as a potential manufacturing hub.
