Live Your Dreams: Make use of the Defence Opportunities and Participate in the Make-in-India Initiative

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Live your Dreams Make use of the Defence
Opportunities and Participate in the
Make-in-India Initiative
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• India is one of the biggest importers of defence
  equipment and the budget for 2017-18 is a
  whopping INR 3.6 lakh crore. With the defence
  sector looking to make the most of the Make-in
  India campaign, it is focusing on manufacturing,
  research and development in the Indian market.
  This will improve the procurement process
  efficiently, promote growth of the defence
  industry, increase indigenous strategies and
  boost competitiveness. Keeping this in mind, the
  defence sector has opened avenues for start-ups,
  Industrial equipment suppliers, small medium
  organizations and IT companies.

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• The Defence Procurement Procedure or DPP is
  strongly advocating the Make in India campaign
  and therefore has provided the Indian defence
  enterprises with simple procedures to do business
  easily. The DPP 2016, gives highest priority to
  bidders that qualify in the Buy Indigenously
  Designed, Developed and Manufactured (IDDM)
  category. This category comprises of products
  that have been designed indigenously, developed
  and manufactured by Indian industrial equipment
  suppliers.

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• The DPP 2016 also imposed offset obligations to
  foreign vendors. According to this, a foreign
  vendor will have to purchase products or services
  manufactured by an Indian company, enter in joint
  ventures with Indian partners, and invest in kind
  through the transfer of technology. This will not
  only boost the capability of domestic defence
  companies but also generate employment. In
  addition, offset obligations also allows Indian
  organizations to gain access to foreign defence
  technologies.

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• A good example of this initiative is the joint
  venture of Boeing with Tata Advanced Systems. It
  has set up a plant in Hyderabad to manufacture
  fuselages and other equipment of Boeing AH-64
  Apache helicopter. Eventually this will become
  the only producer of AH-64 fuselages.
• The Indian government is also leaving no stone
  unturned to develop and produce a
  fifth-generation fighter aircraft (FGFA) with
  Russia and get a full-scale transfer of
  technology and other related benefits.

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• Through this initiative, several Indian companies
  and industrial equipment suppliers are expected
  to start joint ventures with foreign
  manufacturers. Under the DPP 2016 micro, small
  and medium enterprises (MSMEs) have been given
  the first right to undertake projects. However,
  the estimated cost of prototype development
  should not be more than INR 10 crores in
  government funded projects and INR 3 crores for
  projects funded by industries. Along with this,
  simple guidelines for MSMEs have also been
  created to encourage them to participate in the
  Make-in India program.

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• In the recent years, several start-ups have
  created successful e-commerce and service related
  ventures, this Make in India campaign is sure to
  let them explore the defence sector too. The
  start-ups must ensure that they are not only
  responsible to manufacture equipment but also
  provide technical services maintenance,
  integration of information technology services,
  communication and navigation, repair and overhaul
  and other related services.

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• Although much has been said about DPP and Make-in
  India campaign, India is yet to achieve success
  in defence export sector. However, once Indian
  enterprises and Industrial equipment suppliers
  strike the right cord in manufacturing defence
  equipment, start-ups and MSMEs will get better
  avenues globally.

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9156044824
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