A pragmatic approach to defence FDI

Direct procurement from abroad should be made conditional on setting up manufacturing facilities in India

Over the last six months, Defence Minister Rajnath Singh and selected Ministry of Defence (MoD) officials have been addressing industry gatherings — in virtual conferences, given the Covid-19 pandemic. In their presentations, the MoD officials have talked up the defence policy reforms instituted since 2014, which they argue will boost defence production in accordance with Prime Minister Narendra Modi’s slogan of “Atmanirbhar Bharat” (self-reliant India). The officials cite the promulgation of a “negative import list” of 101 defence items, the new Defence Acquisition Policy for 2020 (DAP-2020) with its emphasis on indigenisation, the new Defence Production and Export Promotion Policy