Defence exports too matter

The Ministry of Defence (MoD) has stated that the defence industrial policy has to be supplemented by the strategy for defence exports without which the economic base of the defence industry would be difficult to sustain in the present economic competitive environment.

The government has already announced a Defence Production Policy (DPP) in 2011 with an objective to achieving substantive self-reliance in design, development and production of equipment/weapons systems/platforms required for defence in as early a time frame as possible; to create conditions conducive for the private industry to take an active role in this endeavour; to enhance potential of SMEs in indigenisation to broaden the defence R&D base of the country. While the DPP lays due emphasis on indigenous production of defence equipments with a greater role of private sector, SMEs and R&D institutions, the objective of DPP will not be achievable without having a well thought out export strategy, so that the industry is assured of access to export markets in addition to domestic market for investing in the sector.

Defence Exports Steering Committee: The government said Defence Exports Steering Committee (DESC) under the Chairmanship of Secretary, Department of Defence Production, would be constituted. The Committee will have representatives of armed forces, Defence Research and Development Organisation (DRDO), PIC Wing, Acquisition Wing, MEA, DGFT. Wherever required, the views of industry representatives and other experts will be taken. The functions of this Committee would include consideration and taking decisions on cases of export permissions, which are outside the purview or scope of subordinate authorities/committees particularly export of indigenously developed sensitive defence equipments, monitor the progress in defence exports and suggest specific steps/strategy to boost exports.

Government Support to Defence Exports: The world over, defence exports are covered by the defence diplomacy between friendly countries. This also contributes to building local operational capabilities and, therefore, enhances interoperability with our own forces, especially during UN peacekeeping missions. Wherever feasible and required, the industry delegations from public/private sector/joint ventures of private and public sector would be included in bilateral meetings/discussions with various countries so that the importing country gets due comfort while importing from India. If required, Industry delegations would be taken to target countries under the leadership of officials or DPSUs representatives. Indian Embassies/ Missions abroad would be associated in making targeted efforts for promoting export of Indian defence products.

Presently export of defence equipments/weapons is regulated by two departments. For items contained in the SCOMET list of Foreign Trade Policy of DGFT, export licences are granted by DGFT based on the Inter-Ministerial Working Group set up in DGFT. Ministry of Defence is one of the members in the Inter-Ministerial Working Group. For military stores, no objection certificate (NOC) is issued by the Department of Defence Production. The procedure for issuing the NOC in case of military stores has not been put in the public domain due to non-availability of list of military stores. The present standard operating procedure (SOP) would be revised and streamlined to provide a clarity regarding the procedure and will be put up in public domain. The issues related to end user certificate (EUC) and providing ‘in-principle’ clearance to the industry, so that it can explore export opportunities, would be addressed in the revised SOP appropriately.

For indigenously developed strategic and sensitive weapons/platforms, the DESC will take appropriate decisions regarding exportability of item with/without modification or degradation. Export of such items would be considered on case to case basis and NOC/ clearance would be issued with the approval of Raksha Mantri based on the recommendations of the DESC.