Domestic defense production of India receives booster shot from DAC, says GlobalData

Following the news that the Defence Acquisition Council (DAC) has approved capital acquisition proposals worth US$1.8bn (INR13,700 crore) of various weapons, platforms, equipment, systems required by the Indian defense force;

Mathew George, Ph.D., Aerospace & Defense Analyst at GlobalData, a leading data and analytics company, offers his view:

“The announcement by the Ministry of Defence comes on the heels of another announcement that a new import-ban list of items will be released soon that are expected to be produced in India. These are positive steps for India’s domestic defense industry seeking to increase their share of the defense market while the government moves closer to greater indigenization of parts and equipment for its forces.

“The Indian government isn’t completely against imports or the presence of foreign companies in its defense purchases. However, the government wants the foreign players to develop the processes and manufacturing in India so that development and production can be as localized an affair as possible. Earlier announcements from the government have suggested the same.

“India is in dire need of modern, advanced systems in large numbers to provide for and upgrade its military services technologies to make itself at par with its biggest rivals. While it can’t afford to import everything, it can create the atmosphere to invite global players and domestic industry to develop the technology locally. These would suggest that India will look as a favorable location for both the domestic and global interest in the defense sector.”

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