DEFENCE SECTOR

SECTOR 1
 SUGGESTION
 WHY ?

Govt. aims at increasing annual defense export to $5 Bn by 2025

Number of MSMEs manufacturing defence products increased to 21% in Q2

FY2020

Make In India Initiative - Encouraging MSMEs to collaborate

At Rs 4,71,378 crore ($ 65.50 billion*), India has the 5 th largest defence budget in
the world

100% FDI is allowed in Defence industry; wherein 49% is allowed under automatic
route and beyond 49% through Government route.
Key relevant stakeholders –

• Department of Defence Production,

• Ministry of Defence
• Society of Indian Defence Manufacturers (SIDM).
• DPSUs
 MAKE IN INDIA (IN DEFENSE)
• India plans to spend $130 bn on military modernization in the next 5 years, as achieving self-
reliance in defence production is a key target for the Government of India.
• SIDM is ready to play a major role as a facilitator between foreign players and Indian
Industries in identifying and developing the right partnerships.
• Defence Procurement Procedure (DPP) 2016, any Capital Acquisition categorized as ‘Buy
(Global)' or ‘buy or make with TOT', with value of Rs. 300 Crore or more, is required to offset
30% of the value of foreign exchange spent through Indian Offset Partners (IOP).
• Offsets made through MSMEs will be counted as 1.5 times the actual offsets made. This
provides a great opportunity for MSMEs to enter defence sector
• Technology Centre Systems Programme (TCSP), Micro and Small Enterprises–Cluster
Development Programme (MSE-CDP), Procurement and Marketing Support Scheme
• The list of weapons that cannot be imported will be expanded to give Make in India a
boost and cut down the import bill as well as improve export potential
POTENTIAL COLLABORATORS
1. HINDUSTAN AERONAUTICS LIMITED (HAL):

2. BHARAT ELECTRONICS LIMITED (BEL): 

3. BHARAT DYNAMICS LIMITED.(BDL): 

4. BEML LIMITED (BEML): 

5. MISHRA DHATU NIGAM LIMITED (MIDHANI): 

6. MAZAGON DOCK SHIPBUILDERS LIMITED (MDL): 

7. GARDEN REACH SHIPBULDERS AND ENGINEERS LIMITED (GRSE): 

8. GOA SHIPYARD LIMITED (GSL): 

9. HINDUSTAN SHIPYARD LIMITED (HSL): 

10. SIDM