Indian private firms to enter global defence supply chain markets


  • Clearing the way for Indian private firms to enter the global defence supply chain on a large scale, the government has eased several bureaucratic hurdles in export regulations.
  • The defence ministry has come up with a new set of rules for exports for both the private and public sector that does away with the controversial ‘ultimate end user’ certificate clause for parts and components of military equipment and opens up sectors like armoured equipment, engines, software and sensor systems for easy exports.
  • With the new rules, Indian players will now need certifications only from the immediate buyer of the component—like Germany in the example given above—and not the entire set of nations in the list.
  • While defence exports have been increasing to about Rs 800 crore last year from Rs 512 crore in 2011, the growth has been slow and the size is not even a fraction of the country’s potential, given that the offset policy is favored towards Indian companies selling products abroad.
Source: ET

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