The Union Government of India has implemented several significant initiatives to promote and strengthen the Aerospace and Defence sector in the country. These initiatives are aimed at enhancing self-reliance in defence production, encouraging research and development and fostering collaboration between domestic and international entities.
Here are some key Union Government initiatives related to the Aerospace and Defence sector:
Make in India
The “Make in India” initiative includes a specific focus on defence production. It encourages domestic manufacturing, promotes private sector participation and aims to reduce India’s dependence on defence imports.
Defence Procurement Policy (DPP)
The Union Government periodically revises the DPP to streamline and simplify the defence procurement process, making it more transparent and efficient for both domestic and international defence companies.
Defence Production and Export Promotion Policy (DPEPP)
This policy aims to promote defence exports, incentivize domestic defence production and facilitate collaboration between public and private sectors. It sets ambitious targets for defence production and export.
Strategic Partnership (SP) Model
The SP model identifies specific segments of the defence industry (aircraft, submarines, helicopters, armored vehicles and ammunition) where private sector companies can collaborate with foreign Original Equipment Manufacturers (OEMs) for technology transfer and indigenous production.
The government has raised the cap on foreign direct investment (FDI) in the defence sector, allowing for greater foreign participation and investment in Indian defence companies.
Defence Industrial Corridors
India has established two defence industrial corridors—one in Uttar Pradesh (Bundelkhand Defence Industrial Corridor) and one in Tamil Nadu (Southern Defence Corridor). These corridors aim to attract defence-manufacturing investments, create jobs and promote defence research and development.
Technology Development Fund (TDF):
TDF supports research and development efforts in the private sector by providing financial assistance for projects related to critical defence technologies.
Defence Research and Development Organisation (DRDO) Support
The Union Government continues to fund and support DRDO in its mission to develop cutting-edge defence technologies, including missiles, aircraft and electronic warfare systems.
The government provides various incentives and support to promote defence exports, including participation in international defence exhibitions and the creation of a dedicated defence export promotion agency (DEPA).
Defence Procurement Procedure (DPP) Offset Policy
The offset policy requires foreign defence suppliers to invest a certain percentage of the contract value in India’s defence manufacturing and technology sector, leading to technology transfer and local production.
Indian Defence Technology Startups
Initiatives like the Innovations for Defence Excellence (iDEX) programme aim to foster innovation by collaborating with Startups and small and medium enterprises (SMEs) in developing defence technologies.
The government has launched skill development programmes to train the workforce in advanced Aerospace and Defence technologies, ensuring a skilled talent pool for the sector.
These initiatives of the Union Government collectively strive to boost indigenous defence production, enhance defence capabilities, encourage foreign investments and promote India as a major player in the global Aerospace and Defence industry. These measures align with India’s goal of achieving self-reliance and strengthening its national security infrastructure.
The Tamil Nadu Government has been actively promoting the Aerospace and Defence sector through various initiatives aimed at attracting investments, fostering innovation and creating a conducive business environment.
Here are some key government initiatives related to the Aerospace and Defence sector in Tamil Nadu:
Southern Defence Corridor
Tamil Nadu is a vital component of the Southern Defence Corridor, a government-led initiative that aims to promote defence manufacturing and related industries in the southern region of India. This corridor encompasses Tamil Nadu, Andhra Pradesh and Telangana, with focus on creating a defence-manufacturing ecosystem, attracting investments and generating employment opportunities.
Aerospace and Defence Policy
The Tamil Nadu Aerospace and Defence Industrial Policy, introduced by the State Government, provides a comprehensive framework for promoting the Aerospace and Defence sector. It offers incentives, concessions and support measures to encourage investment in research and development, manufacturing and export of Aerospace and Defence products.
Aerospace Parks and SEZs
Tamil Nadu has established dedicated aerospace parks and special economic zones (SEZs) to facilitate the growth of the Aerospace and Defence industry. These zones offer excellent infrastructure, tax benefits and a streamlined approval process for companies operating in them.
Skill Development Initiatives
The State Government has launched several skill development programmes in collaboration with educational institutions and industry partners. These initiatives aim to train and upskill the workforce in Aerospace and Defence-related technologies, ensuring a steady supply of skilled professionals.
Tamil Nadu offers a range of incentives, including tax concessions and subsidies, to attract Aerospace and Defence companies. These policies create a favorable business environment and reduce the cost of setting up and operating an industry in the State.
Ease of Doing Business
The State Government has implemented measures to simplify and expedite various administrative processes, such as land acquisition, permits and licences, making it easier for companies to do business in Tamil Nadu.
Research and Development Collaboration
The government encourages collaboration among defence companies, research institutions and educational establishments. It provides support for joint research and development projects, fostering innovation and technology transfer.
Tamil Nadu has made significant investments in infrastructure development, including transportation, connectivity and utilities, to support the Aerospace and Defence industry’s growth.
The State Government actively seeks international collaborations and partnerships in the Aerospace and Defence sector to bring in global expertise and investments.
Initiatives to promote the export of Aerospace and Defence products and technologies are in place. These include support for participation in international trade shows and exhibitions.
These government initiatives collectively create an ecosystem that encourages Aerospace and Defence companies to invest, innovate and operate in Tamil Nadu. By providing incentives, infrastructure and a skilled workforce, the government aims to position the State as a prominent player in India’s Aerospace and Defence industry.