Lok Sabha Question No. 83 (STARRED), answered on 2016-04-29
Subject: Self Sufficiency in Defence
Ministry: DEFENCE
Asked by: NITYANAND RAI

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## STARRED QUESTION NO.83

TO BE ANSWERED ON THE 29 TH  APRIL, 2016

## SELF SUFFICIENCY IN DEFENCE

## *83. SHRI  NITYANAND RAI:

Will the Minister of DEFENCE be pleased to state:

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- (a) whether the country has attained self-sufficiency in the defence production, if so, the details thereof along with the imports made during the last three years, year-wise and country-wise;
- (b) whether the Government has fixed any target for import of defence equipment for the current and the next two years; and
- (c) if  so,  the  details  thereof  along  with  the  year-wise  budget  earmarked  for  the purpose?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                            (SHRI MANOHAR PARRIKAR)

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(a) to (c): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO  PARTS (a) to (c) OF LOK SABHA STARRED QUESTION NO. 83 FOR ANSWER ON 29.04.2016

(a)  to  (c):        A  number  of  measures have  already  been  taken to  achieve  Self Sufficiency in defence production by harnessing  the capabilities of the public and private sector. These measures include according priority and preference to procurement from Indian vendors, liberalization of the licensing regime and providing access to modern and state-of-the-art technology to Indian industry by raising the cap on FDI in the defence sector.  At present, majority of the naval ships and submarines are constructed in Indian shipyards. During the last  three  years,  over  75%  of  the  total  expenditure  by  the  Indian  Army  on capital acquisition has been for orders placed on Indian firms. The  new  Defence  Procurement Procedure 2016 (DPP 2016) has been promulgated for Capital procurements and has come into effect from 1 st April 2016.    DPP  2016  gives  strong  support  to  'Make  in  India'  by  according  the highest  priority  to  Buy  Indian  (Designed,  Developed  and  Manufactured) (IDDM).  It  also  focuses  on  enhancement  and  rationalization  of  indigenous content.  The  'Make'  Procedure  has  been  simplified  with  provisions  for earmarking  projects  not  exceeding  development  cost  of  Rs.  10  crores (government funded) and               Rs. 3 crores (industry funded) for MSMEs; and with provisions for involving private industry as  production agencies and technology transfer partners. The  expenditure  in  respect  of  orders  placed  on  foreign  vendors, primarily from countries such as USA, Russia, Israel and France, has reduced from  Rs.  35082.10  crore  in  2013-14  to    Rs.  24992.36  crore  in    2014-15  and Rs.  22422.12  crore  in  2015-16.    Even  in  cases  where  current  operational exigencies necessitate import of defence equipment, efforts are made, where possible,  to  ensure  the  involvement  of  Indian  industries  as  production agencies,  offset  partners  etc.    No  target  is  fixed  for  import  of  defence equipment  and  therefore,  no  separate  budgetary  allocation  is  made  against such targets.

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