Defence sector planned to grow to $26 billion by 2025
Indian government has rolled out another opportunity for the private sectors to grow and prove themselves. At Global Business Summit 2020, Defence Minister Rajnath Singh spoke about the initiatives taken by the government to encourage the private sectors and employment for two to three million people, by increasing the defence production and the focus on the export of arms.
Through aerospace and defence goods and services, the government has set goals to make a turnover of $26 billion.
Although our defence infrastructure has provided us with a basic encouragement for indigenous development, the industry has left much to be desired for. One of the primary reasons for this is to keep the defence production within government control and ownership. However, there is a need for the private sector to play its long-awaited role to make the industry innovative, internationally competitive and structurally efficient. The government has initiated actions to make defence exports less strict, simplified the defence offset policy, opened up government-owned trial and testing facilities for the private sector. It has also opened two industrial defence corridors and announced plans to encourage innovation by involving start-ups, small and medium enterprises.
A seven-fold growth in defence exports from the year 2016-17 contributed to procedural simplification. In the next five years, India will also be able to expand credit lines and grants to friendly countries. The government intends to export defence goods and services worth 5 billion dollars, in the next five years. Through previous programs and policy changes, the development of the private sector is increasingly apparent. The share of the defence growth in the private sector has risen to more than 21 percent in only a few years.