India’s First Defense Electronics Policy Likely By August End

The Indian government is likely to announce its first Defense Electronics policy which will streamline procurement and domestic manufacturing by the end of this month.

Speaking to Defenseworld.net during the ongoing annual Deftronics-2016 event, defense electronics event in Bangalore, India Electronics and Semiconductor Association (IESA) president, M N Vidyashankar said, “The recommendations on the policy has been so far discussed and the final draft is ready. We are waiting for it to be announced by the government of India in a couple of weeks.”

“IESA and National Association of Software and Services Companies (NASSCOM) and Roland Berger consulting along with industry partners and private firms have discussed the policy recommendations with the defense ministry based on major groups and sub-groups in the segment,” he added.

The strategies and recommendations outlined in the report are based on group classifications such as structural issues, visibility and domestic capability building in defense electronics and system design.

The report suggests that the government needs to have the vision to provide the domestic companies the required visibility, timely closure of contracts, ensure technology transfer and provide the manufacturing push through certain initiatives and incentivisation.

In order to promote exports of defense electronics, the policy recommendations have stated the need for an introduction of multiplier that will ensure export base of defense electronics around valid technologies.

The draft also suggests the Defense Public Service Undertakings (DPSUs) need to leave control of the supply chain and the government needs to ensure more opportunities in the private industry.