India Implements New Policy To Increase Military Product Localization Rate
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India implements new policy to increase military product localization rate
According to foreign media, in order to improve the efficiency of the defense industry and reduce import dependence, the Indian Ministry of Defense has implemented a new policy to support long-term ordering of state-owned enterprise defense equipment.
According to the report of the Jane ’s Defense Weekly website on November 25, the new policy of the Indian Ministry of Defence supports the long-term ordering of local products of the Defense Public Utilities Unit (DPSU) and the Arsenal Management Board (OFB), “allowing investment in R & D / localization Economically attractive to businesses. "
According to reports, the New Deal was supervised and implemented by the Indian Ministry of Defense "Defense Production Agency" (DPP), which came into effect on November 15 and is intended to help local enterprises produce defense product parts instead of imports.
The New Deal stipulates that a special committee will determine which parts currently need to be imported will "potentially benefit" from long-term orders. The Department of Defense said that in the process will also listen to the opinions of direct users of parts. The New Deal stipulates that the term of long-term orders cannot exceed 10 years, but must include a minimum period to provide "full economic feasibility" for procurement projects.
It is reported that the new policy is related to other policies implemented this year, with the aim of supporting the enhancement of Indian defense's ability to replace imported products. According to India ’s “National Defense Production Agency”, from 2017 to 2018, the value of parts and special materials imported by the Indian Defense Public Utilities and the Arsenal Management Board was as high as Rs 138 billion (approximately $ 1.9 billion). The Indian Ministry of Defense hopes to use the new deal to reduce the total value of such imports.
According to reports, the purpose of the new policy is to encourage India to develop a stronger military industry ecosystem so that it can produce a range of imported parts.
5In May of this year, India ’s “National Defense Production Agency” also released a list to determine the “localization level” of local parts and components it wants to purchase. Among them, the localization index of avionics equipment should reach 65%. Other products include aerospace standard materials (45%), surface ship sonar shrouds (50%), seawater pumps (50%), torpedo handling carts (50%), helicopter landing systems (60%), diesel engines Mainframe (50%), integrated platform management system (50%), internal communication system (60%) and various alloy steel plates (50%).