Breaking new ground, the Defence Acquisition Council (DAC) under the Chairmanship of Defence Minister, Arun Jaitley, has finalised the broad contours of a policy aimed at engaging the Indian private sector in the manufacture of hightech defence equipment in India. The policy is aimed at developing the defence industrial eco-system in the country through the involvement of both the major Indian corporates as well as the MSME (medium, small and micro enterprises) sector.

The policy, which was developed through extensive stakeholder consultations with Indian industry, envisages the establishment of long-term strategic partnerships with qualified Indian industry majors through a transparent and competitive process wherein the Indian industry partners would tie up with global OEMs (original equipment manufacturers) to seek technology transfers and manufacturing know-how to set up domestic manufacturing infrastructure and supply chains. The policy will give a boost to the ‘Make in India’ policy in the Defence sector and set Indian industry on the path to acquiring cutting-edge capabilities which will contribute to the building of self-reliance in the vital sector of national security requirements.

The policy is expected to be implemented in a few selected segments to begin with, namely, fighter aircraft, submarines and armoured vehicles. In future, additional segments may be added. Appropriate institutional mechanisms will be set in place to implement the policy.