Shares of defence related shares firmed up after the defence minister Manohar Parrikar said the DPP would give priority to indigenous manufacturers under the Make in India initiative but it wouldn’t be a mandatory condition to award contacts. The new policy is likely to be implemented from April 2.
Parrikar said, “The DPP will have a new category of indigenously designed, developed and manufactured (IDMM) as the most preferred category for procurements. It aims to boost domestic private and small-scale industry. The government promises to make the defence market more lucrative for Indian industry.” (Click here for the full report)
The new policy would modernise the defence forces. The policy would focus on reducing delays in procurements by eliminating repetitive procedures.
Among the defence related shares, Astra Microwave was up 2.5%, Pipavav Defence surged 7% and BEML was up nearly 2%.
