Changing Policy Environment Boosting 'Make in India'
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OFFICIALTN ER AVAIL YOUR COPY NOW! February-March 2020 Volume 17 No. 1 `100.00 (India-Based Buyer Only) OFFICARIAL MEDIAOF P MOD SP’s Military AN SP GUIDE P UBLICATION Yearbook 2019 DEFEXPO 2020 MEET US @ SP’s PUBLISHER OF HALL 3 | STall - Q47 DEFEXPOOF M 20O DDAILY For details, go to Back Cover WWW.SPSLANDFORCES.COM ROUNDUP THE ONLY MAGAZINE IN ASIA-PACIFIC DEDICATED to LAND FORCES IN THIS ISSUE >> LEAD STORY PAGE 4 Indian Defence Industry Changing Policy Environment Boosting AkAsh MIssILE In order for India to possess a technologically advanced and self-sufficient defence industry, a lot will depend on ‘Make in India’ maintaining a conducive eco-system for all stakeholders and a robust framework for effective implementation of reforms. The driver for a vibrant ‘Make in India’ will be the presence of a robust Major General Arun Kumar Varma (Retd) ecosystem energised and driven by the industry friendly policies, time PAGE 6 stipulated outcomes with accountability and a policy of “Risk Sharing Gain Indian Army Modernisation: An Update Sharing”. GRAPHIC: SP’s Design SIMPLIFICATION TO CORE MBT Arjun Mk II Defence Minister Rajnath Singh has cleared the restructuring of the Army headquarters RELAXATION IN CONDITIONS FACILITATIONS & GUARANTEES which involves relocating 206 officers from • Allowing all eligible vendors to • No foreclosure - assured orders. the HQ to field areas participate in the prototype devel- • Provision for Project Facilitation Lt General Naresh Chand (Retd) opment process. Team. • No Cap on number of players who • IPR remains with the industry. PAGE show interest & offer prototype. 9 • Reduces the total time from DefExpo India 2020 • Suo-moto proposals AIP to placing of order. allowed. Lt General P.C. Katoch (Retd) • Projects with develop- • Start-ups permitted to mental cost of less than PLUS supply equipment. three crore reserved for Indian Army Inducts First Lot of MSME. Locally-Assembled M777 Artillery Guns 10 Vishal Thapar Biggest Make in India Programme for Indian Army Dropped 10 Vishal Thapar REDUCED SHQ $930 Million Deal for 6 Apache DOCUMENTATION EMPOWERMENT Helicopter Gunships for Army • No detail project report • SHQ to give all subse- Awaits CCS Approval 11 required - saving of time quent clearances after Vishal Thapar & efforts. AIP. • Option with SHQ to accept single New Assault Rifles After 15 Years 11 individual/firm offers on innova- tive solution. • SHQs allowed to hire domain experts/consultants. siG 716 Assault rifle Lt General P.C. Katoch (Retd) The Future of Warfare 14 Vishal Thapar News in Brief 15 Continued on page 2.... 1/2020 SP’s LAND FORCES 1 >> LEAD STORY This issue of SP’s Land Forces out by the Government to boost ups over the next five years in most prestigious awards in Aero- coincides with the DefExpo 2020 the defence manufacturing base. seeking new technologies. The space Media and the number of and thus the lead article is on the Some key initiatives are Strategic development of Defence Cor- nominations for finals, received nuts and bolts of ‘Make in India’ Partnership Model; iDEX Initia- ridors is another key initiative to by us, are amongst the high- IAL initiative pertaining to defence. tive and Start-ups; and develop- boost manufacture and encour- est by a publishing company, ‘Make in India’ is a visionary ini- ment of defence corridors. To age including by MSMEs. Two which includes global leaders tiative, mooted by Prime Minister harness the strength of private defence corridors are coming and heavyweights. Details of r Narendra Modi which identifies 25 industry and to foster Govern- up, one in Uttar Pradesh and the the nominations can be seen on key manufacturing sectors includ- ment Private Sector partner- other one in Tamil Nadu. pages 8 and 9 inside. ing defence. The aim is to boost ship, DPP 2016 introduced the Modernisation is an ongo- This issue just about wraps domestic defence manufactur- Strategic Partnership Model to ing process for any army and up with the usual News Digest ing and achieve self-reliance develop strategic weapon sys- involves structural and hardware and flag postings.Your favourite and strategic autonomy. The tems. Strategic Partners from the changes. The Indian Army is at defence publishing house – ’SP Government plans to make India private sector would be identified the brink of structural changes Guide Publications’ will be at the a $5 trillion economy by 2025. to become partners with the MoD with Integrated Battle Group DefExpo 2020 so if you are in Such economic growth requires in their deliberations under Gov- planned to be formed after being Lucknow, do pay us a visit at Hall foundational pillars of matching ernment to Government negotia- tested in two corps – one in the 3 Stall Q47. EDITO defence capabilities energised tions with foreign Original Equip- east and one in the west. The Wish you happy reading and by a strong indigenous defence ment Manufacturers (OEMs) for hardware changes are being a Happy New Year! industrial base. The key to growth collaboration in production. For carried out slowly but steadily. is sustained and evolved indigeni- iDEX, the Government has ear- Read all about this in an article sation programmes. marked funds for innovations with on Army modernisation. The lead article is followed the aim of trying to bring together SP Guide Publications is up by an overview of India’s innovators with public and private proud to share that 7 articles by defence manufacturing base sector industry and the Armed our journalists, in four categories, which includes the Defence Forces to find new technology have been shortlisted for finals in PSUs and the private sector solutions. Plans are also afoot to the upcoming Aerospace Media JAYANT BARANWAL along with the initiatives carried fund at least 250 defence start- Awards - Asia. These are the Publisher & Editor-in-Chief PHoTograph: PIB LT GENERAL A.B. SHIVANE (Retd) potential and outcomes. Thus, there exists a gap between expectations and deliverance T HAS bEEN NEARly six years since due to a myriad of reasons including budget- the ‘Make in India’ initiative was ary constraints, lacklustre implementation announced by Prime Minister Naren- of policies, pervasive technological back- dra Modi. Defence manufacturing is one wardness, bureaucratic lethargy, skewed off- of the 25 key sectors identified under set policies and evasive foreign direct invest- I‘Make in India’ initiative to boost defence ment (FDI), among other issues. Above all manufacturing and achieve self-reliance there has not been any cultural shift or major and strategic autonomy. India is poised to restructuring for making the present Make become a $5 trillion-dollar economy by in India initiative and defence procurement 2025. Such economic growth requires to outcome oriented. A glaring example is the be on the foundational pillars of a match- failure and loss of credibility of “Make” proj- ing defence capability energised by a strong ects to take off essentially due to weak and indigenous defence industrial base. India is wavering support by decision makers. The thus striving for self-sufficiency by promot- apprehensions of foreign investors toward ing ‘Make in India’ initiative in its defence ‘Make in India’ in defence could be reversed through focused, sustained and evolved by a sound offset policy. Offsets’ discharge by indigenisation programmes. foreign OEMs is a standard practice world- India has also moved up two spots to Defence Minister rajnath singh addressing at the ‘Def-Connect’ under the aegis of Innovations for wide and have been leveraged to overcome become the seventh most valuable ‘nation Defence Excellence (iDEX), in new Delhi on november 11, 2019. technological barriers by effectively absorb- brand’ 2019 in the world. The Indian defence ing foreign capital, technological transfers market is set to grow at an CAGR >4 per cent with top preference to IDDM. The policy ini- l Ease of Doing Business in Defence Pro- and know-how. DPP 2016 also needs to be with the base year as 2018 and prediction tiatives have resulted in: duction. simplified and made more outcome oriented year as 2024. Its brand value has increased l Enhanced Ease of doing Defence busi- l Simplification of licensing Process - with aspects such as ATP included in RFP, by a whopping 19 per cent in the last one ness - MSME have been given a boost Validity of Industrial quality cum cost based model, joint inspec- year to $2,562 billion, according to the with nearly 70 per cent licences issued to licence extended to 15 years with a pro- tion and self-certification rather than an annual report on the world’s most valuable MSMEs with 52 per cent in land systems. vision of further three years extension. archival DGQA organisation, etc. nation brands compiled by brand Finance. l Defence Investor Cell being established l liberalisation of FDI Policy- FDI up to set on in January 2018 nearly 100 74 per cent under automatic route will Conclusion Envisaged Defence Production Target investors facilitated in 100 days. be allowed in niche technology areas. The driver for a vibrant ‘Make in India’ will India plans to spend $130 billion on mili- l De-licencing of 65-70 per cent of items l Modification of Offsets - New investment be the presence of a robust ecosystem ener- tary modernisation in the next five years, as including parts, components etc for linked avenues for discharge of offset gised and driven by the industry friendly achieving self-reliance in defence production manufacturing by private industry. obligation. policies, time stipulated outcomes with is a key target for the Government of India. l Green Channel Policy 2017 which l Involving Start-ups in Technology accountability and a policy of “Risk Sharing The Government has opened up the Defence allowed deemed registration status, Development eg.