Defence policy creates room for local players

The government has announced phased restrictions on imports of 101 defence equipment required by the armed forces. It gives the domestic industry the necessary impetus to plan its investments and upgrade its capabilities to design the products that the armed forces need. The defence establishment has to now partner with the domestic industry to ensure cost effective and timely deliveries of these equipment. The domestic defence equipment manufacturers have welcomed the embargo that promises a business of Rs 52,000 crore for them.

The case for restricting imports and encouraging procurement from domestic sources is easy to make. It generates more employment