Open AccessA STUDY OF THE CONTRIBUTION OF MAKE IN INDIA IN INDIAN DEFENCE PRODUCTION SECTOR
Author(s) -
Ameena Sabooni
Publication year - 2019
Publication title -
epra international journal of economic and business review
Language(s) - English
Resource type - Journals
eISSN - 2349-0187
pISSN - 2347-9671
DOI - 10.36713/epra2954
Subject(s) - private sector , public sector , foreign direct investment , crore , business , gross domestic product , economic policy , liberalization , industrial policy , public policy , procurement , economics , international trade , economic growth , market economy , economy , marketing , poverty , macroeconomics
Prime Minister Modi’s new campaign for “Make in India” is to increase share of manufacturing from the current level of 15 per cent of Gross Domestic Product (GDP) to 25 per cent and create additional employment opportunity of 1 crore per year. The government is putting thrust on export-led growth and should give primacy to “Make for India”. Defence manufacturing came out of the stranglehold of Public Sector Undertakings-Ordnance Factories monopoly with major liberalisation in 2001 with 100 per cent private sector participation and the recently announced 49 per cent in Foreign Direct Investment. Policy footprints such as the Defence Procurement Policy 2013 have created a level playing field for the private sector. The Defence Production Policy 2011 aims at higher self reliance in critical technology and the Offsets Policy 2012 which seeks to leverage our big arms’ acquisition to bring in state-of-art technology, and long term partnership with Original Equipment Manufacturers (OEMs). The Self Reliance Index of our defence acquisition, however, remains at a wobbly 30 per cent despite spasmodic policy posturing to improve indigenisation.KEY WORDS: GDP, Export led growth,PSU, Private Sector Participation, Foreign Direct Investment etc