The government is going to set up a Defence Export Promotion Council (DEPC) to give a push to the exports of indigenous military products, which stood at an all-time high of ₹21,083 crore in the FY 2023-24 and targeted to grow to ₹50,000 crore in next five years.
Industry sources told businessline the Ministry of Defence has assigned the Society of Indian Defence Manufacturers (SIDM), the apex body of the Indian defence industry, to form the DEPC.
The exclusive body for pushing military exports is at the initial phase for formation and expected to take a shape in a month’s time.
It would be like other export promotion councils in India, and perform both advisory and executive functions for the Indian defence industry, Industry sources shared.
Registering authority
The Council will also act as the registering authority for exporters of defence products.
To constitute the DEPC, which has been registered as a ‘society’, was part of the 100 days agenda of the Ministry of Defence (MoD) when the Modi government returned to power for the third time consecutively in 2024.
At least half-a-dozen leading defence and aerospace industry players, such as Tata Advanced Systems Limited (TASL), Larsen & Toubro and Bharat Forge, have come on onboard to become founding members of executive committee which will have its first meeting later this month to give direction to the modalities, industry sources elaborated on the plan.
Inter-ministerial approvals of Ministry of Defence, Ministry of Commerce, Ministry of Finance and Ministry of External Affairs, are still awaited to move closer to finalising the DEPC.
An Industry representative said the export promotion council was much needed to avoid people running after various ministries to know laws and regulations for doing business abroad.
Grievance redressal
Also the platform would work towards grievance redressal for the defence industry, aiding ease of doing business.
The move is part of the multi-pronged step the government has taken to exploit export potential, which includes effective policy reforms, positioning defence attaches in Indian embassies in countries and continents of interests, and asking defence PSUs to raise dedicated units for sales of products abroad and encouraging participation in defence expos across the globe to display indigenous military software and hardware.
Fresh batch of defence attaches like one at Morocco, a country in Africa being targeted to increase the penetration of Made in India defence products, will be posted next year, said sources.
The defence exports have registered a substantial growth of 32.5 percent over the previous fiscal year, rising to ₹21,083 crore from ₹15,920 crore.
As of now, India exports to over 100 nations, with the top three destinations in 2023-24 being the USA, France, and Armenia.
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Published on December 12, 2024
https://www.thehindubusinessline.com/news/gov-to-set-up-defence-export-promotion-council-for-selling-made-in-india-military-products-abroad/article68977541.ece
