India’s defence exports likely to surge 40% this year
As India’s defence exports have already touched Rs.700-crore mark in the first half of the current financial year, the shipment of this sector is expected to set a new benchmark with the government unleashing a slew of policy reforms to push domestic manufacturing and overseas sales by private players. Between April and September this year, the export of defence items by private companies was valued at Rs.441.06 crore, more than three times higher than their annual shipment value of Rs.132.17 crore recorded during previous year. While private firms exported items worth Rs.286 in 2013-14, their total shipment was capped at Rs.138.13 crore in 2012-13, showed the data revealed by the Minister of State for Defence Rao Inderjit Singh on Friday. The figures were collected on the basis of clearances given by the Ministry of Defence for the export of military stores. According to the Defence Ministry, the overall exports of the sector including those private and public sector units have reached 695.70 crore till September this year. Of the total shipment value, the share of private sector was 63.38% this year, much higher than the contribution of 41.67% and 30.97% recorded during the financial years 2013-14 and 2012-13 respectively. Going by the current trend, the total export of Indian defence equipment is likely to increase by at least 40% by the end of this fiscal as against Rs.994.04 crore registered during the past financial year. Apart from relaxing various norms to allow private firms to enhance exports, the government has taken several initiatives to attract foreign investments in the defence manufacturing as well. One of the most tedious procedures that required an exporter to obtain the end user certificate from the authorities of the importing country has been dispensed with for the export of parts, component, sub-assemblies and sub-systems. Also, a provision has been made for issuing advance clearance to companies for exploring business opportunities abroad. Last month, the government had announced a set of rules for easing foreign direct investment (FDI) process in 15 key sectors including defence.
December 12, 2015 | 02:55pm IST