- 1.
The initiative aims to increase the share of domestic procurement in defense spending. The target is to achieve 70% indigenization in defense production by 2027.
- 2.
It promotes foreign direct investment (FDI) in the defense sector. The government has increased the FDI limit to 74% under the automatic route and up to 100% with government approval.
- 3.
The Defence Acquisition Procedure (DAP) outlines the guidelines for defense procurement, prioritizing indigenous design, development, and manufacturing.
- 4.
The Offsets Policy requires foreign defense companies to invest a portion of the contract value in India, promoting technology transfer and local manufacturing.
- 5.
The initiative encourages the participation of private sector companies, including small and medium enterprises (SMEs), in defense production.
- 6.
It focuses on developing a strong defense industrial base in India, including research and development (R&D) capabilities.
- 7.
The government provides financial assistance and incentives to domestic defense manufacturers, such as tax benefits and subsidies.
- 8.
The initiative promotes skill development and training programs to create a skilled workforce for the defense industry.
- 9.
It aims to reduce bureaucratic delays and streamline the defense procurement process.
- 10.
The government has established defense industrial corridors to promote defense manufacturing in specific regions of the country. These corridors offer infrastructure and support services to defense companies.
- 11.
The Strategic Partnership (SP) model identifies Indian private sector companies to partner with foreign OEMs (Original Equipment Manufacturers) to manufacture major defense platforms in India.
- 12.
The Innovations for Defence Excellence (iDEX) initiative provides funding and support to startups and innovators in the defense sector.
