Government today said it will come up with industry friendly defence procurement policy with a view to attracting overseas and domestic investment for manufacture of equipment in the country.
"Defence Procurement Procedure (DPP) 2015 will have an industry friendly approach for the defence production," Defence Minister Manohar Parrikar told PTI on sidelines of the Vibrant Gujarat Summit here.
India, which is a major importer of defence equipment, has taken steps like relaxed foreign direct investment norms, to boost local manufacturing.
Observing that there are "some gaps" in the current DPP as there are no defined parameters, he said "since we are the only consumer and the buyer so whenever you deal with anyone there has to be guarantee of purchase from Make in India. Unless, you guarantee a purchase on successful production, there is no chance of anyone coming forward".
Current policies, Parrikar added, are "too cumbersome and bureaucratic nightmare" for the industry and needs to be reviewed.
India had directly paid over Rs one lakh crore to foreign firms for acquisition of equipment for the armed forces during the last five years.
On whether he would demand greater allocation for defence procurement in the forthcoming Budget, Parrikar replied "more budget does not mean better defence acquisition".
He hoped that with change in the business climate and setting up of new guidelines and principles, the process of local investment will start.
When asked if government would focus on buying equipment from private sector, he said it is "not just throwing something at private (sector), it should also interest the defence".
