Lok Sabha Question No. 447 (UNSTARRED), answered on 2023-07-21
Subject: Value of Defence Production
Ministry: DEFENCE
Asked by: Prataprao  Jadhav, Sambhajirao Mane Dhairyasheel, Bidyut Baran Mahato, Sudheer Gupta, Shrirang Appa Barne, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA UNSTARRED QUESTION NO. 447

TO BE ANSWERED ON 21 st  July, 2023

## VALUE OF DEFENCE PRODUCTION

## 447. SHRI PRATAPRAO JADHAV:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE: SHRI BIDYUT BARAN MAHATO: SHRI SUDHEER GUPTA: SHRI SHRIRANG APPA BARNE: SHRI SANJAY SADASHIVRAO MANDLIK:

Will the Minister of DEFENCE be pleased to state:

- (a)  whether the value of defence production has crossed the figure of Rs. One lakh crore for the first time ever during financial year 2022-23;
- (b)    if  so,  the  details  thereof  along  with  the  policy  reforms  taken  by  the  Government  to achieve the objective of 'ease of doing business' in the defence manufacturing;
- (c)    whether  the  industries  including  MSMEs  and  start-ups  have  shown  interest  in  design, development and manufacturing of defence equipment resulting in exponential growth in this sector;
- (d)  if so, the details of the various initiatives taken, assistance provided/being provided by the Government to various MSMEs and start-ups expressing interest in defence equipment manufacturing; and
- (e)    the  manner  in  which  these  MSMEs  and  startups  have  given  boost  to  the  defence industrial  manufacturing  ecosystem  in  the  country  and  helped  in  generating  employment opportunities thereof?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(a):  Yes, Sir.

- (b) to (e):  Government has taken several policy initiatives in the past few years and brought in  reforms  to  encourage  indigenous  design,  development  and  manufacture  of  defence equipment  by  Indian  Industry  including  MSMEs  and  Startups,  thereby  promoting  ease  of doing business

(SHRI AJAY BHATT)

in defence manufacturing & technology in the country. Government promotes participation of MSMEs/  Start-ups  for  development  of  defence  technology  under  various  schemes  like Innovations for Defence Excellence (iDEX), Technology Development Fund (TDF), Make procedure  under  Defence  Acquisition  Procedure  (DAP)  2020.  The  DAP  2020  provides special provisions to encourage MSMEs and Start-ups. Moreover, Public Procurement Policy for MSEs Order, 2012 has been implemented at DPSUs under which the price preference is given  to  MSME  bidders  under  certain  conditions.  Further,  DPSUs  and  services  have uploaded more than 30,000 defence items on 'Srijan portal for indigenisation' and offered them to Industry including MSMEs to become partners in indigenisation process.

Further, Innovations for Defence Excellence (iDEX) was launched in April, 2018 to foster  innovation  and  technology  development  in  Defence  and  Aerospace  by  engaging Industries including MSMEs / Start-ups. iDEX provides grants/funding and other support to carry out R&D activities for futuristic technologies. The industries including the MSMEs and Startups have given an enthusiastic response to iDEX for defence innovation works including design,  development  and  manufacturing  of  Defence  equipment.  iDEX  has  given  boost  to defence industrial  manufacturing ecosystem  by promoting  formation of Start-ups by individual innovators, and supporting sustenance to existing Start-ups/MSMEs. This has also led to the generation of employment opportunities.

Moreover, to bring MSMEs into the defence supply chain and thereby boost the selfreliance  in  defence  sector  in  the  country  and  also  to  contribute  towards  defence  exports, Ministry  of  Defence  has  made  a  scheme  of  promotion  of  MSMEs  in  defence.  Under  this scheme, workshops/seminars are organized in collaboration with Industry Associations and other stakeholders from different parts of the country.

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