Lok Sabha Question No. 1070 (UNSTARRED), answered on 2025-12-05
Subject: Defence Production and Export Promotion Policy
Ministry: DEFENCE
Asked by: Shri Ramasahayam Raghuram Reddy

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

## LOK SABHA UNSTARRED QUESTION NO. 1070

TO BE ANSWERED ON 05 TH  DECEMBER, 2025

## DEFENCE PRODUCTION AND EXPORT PROMOTION POLICY

## 1070. SHRI RAMASAHAYAM RAGHURAM REDDY:

Will the Minister of DEFENCE be pleased to state:

- (a)  whether  the  Government  has  launched  any  initiatives  to  boost  indigenous  production  of defence equipment under the 'Atmanirbhar Bharat' campaign;
- (b) if so, the details thereof along with the key components of the Defence Production and Export Promotion Policy (DPEPP) 2020;
- (c) whether any financial incentives or subsidies is provided to indigenous manufacturers;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) whether the Government has made any amendments to the Defence Acquisition Procedure (DAP) favouring domestic procurement; and
- (f) if so, the details thereof and if not, the reasons therefor?

## A  N  S  W  E  R

MINISTER OF STATE

## IN THE MINISTRY OF DEFENCE

- (a) to (d) Several policy initiative and reforms have been taken by Government in the past few  years  to  encourage  indigenous  design,  development,  R&D  in  manufacturing  of  defence equipment, thereby boosting indigenous production of defence equipment under the 'Atmanirbhar Bharat' campaign and promoting self-reliance in defence manufacturing in the country. These policy initiatives and reforms, inter-alia, include: -
- (i) According priority to procurement of capital items from domestic sources under   Defence Acquisition Procedure (DAP)-2020. In order to promote Indigenous design and development of defence equipment 'Buy {IndianIDDM (Indigenously Designed, Developed and Manufactured)} category has been accorded top most priority in Defence Acquisition Procedures2020 for procurement of capital equipment.

(SHRI SANJAY SETH)

- (ii) Notification of five  'positive  Indigenization  Lists' of total 509 items of Services  and  five  'Positive  Indigenization  Lists'  of  total  5012  items  of Defence Public Sector Undertakings (DPSUs), for which there would be an embargo on the import beyond the timelines indicated against them.
- (iii) Launch of an indigenization portal namely SRIJAN  to facilitate indigenisation by Indian Industry including MSMEs.
- (iv) Simplification of Industrial licensing process with longer validity period.
- (v) Liberalization of Foreign Direct Investment (FDI) policy allowing up to 74 % FDI under automatic route and upto 100% FDI under government route.
- (vi) Simplification of Make Procedure.
- (vii) Launch  of  Innovations  for  Defence  Excellence  (iDEX)  and  Acing Development  of  Innovative  Technologies  with  iDEX  (ADITI)  schemes involving startups & Micro, Small and Medium Enterprises (MSMEs) to foster innovation & technology development in defence and aerospace.
- (viii) Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers.
- (ix) Establishment  of  two  Defence  Industrial  Corridors,  one  each  in  Uttar Pradesh and Tamil Nadu to develop domestic supply chain and strengthen defence manufacturing ecosystem in the country.
- (x) Transfer  of  Technology  developed  by  DRDO  to  industries  through Licensing Agreement for Transfer of Technology (LAToT) and Development cum Production Partner (DcPP).
- (xi) Providing Test Facility Support to Industries in DRDO labs.
- (xii) Launch of Technology Development Fund (TDF) which provides financial  support  to  Indian  industries  for  design  and  development  of Innovative Defence Products.
- (xiii) Providing details of DRDO Patents available on the DRDO website for industries to use free of cost, supporting the vision of Aatmanirbhar Bharat.
- (xiv) Providing Scientific and Technological support to industries by DRDO.

2. Defence Production & Export Promotion Policy (DPEPP) 2020 was only at the draft stage and not finalised.

(e) & (f) Defence Acquisition Procedure (DAP) 2020 has been amended from time to time in order to further tilt procurement in favour of Indian industries by mandating higher Indigenous Content, prioritizing under Indian categories and streamlining acquisition procedures for MSMEs and Startups.

****