IAS Gyan

Daily News Analysis

Draft Defence Production & Export Promotion Policy issued

4th August, 2020 Economy


  • With the aim of achieving a manufacturing turnover of $25 bn or ₹1,75,000 crores, including exports of $5 bn in aerospace and defence goods and services by 2025, the Ministry of Defence (MoD) put out a draft ‘Defence Production & Export Promotion Policy (DPEPP) 2020’ for public feedback.


  • The DPEPP 2020 is envisaged as an overarching guiding document of MoD to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports.
  • In order to enhance procurement from domestic industry, it is incumbent that procurement is doubled from the current ₹70,000 crores to ₹1, 40,000 crores by 2025.
  • Defence Attachés have been mandated and are supported to promote export of indigenous defence equipment abroad.
  • This effort would be supplemented by selected Defence Public Sector Undertakings (DPSU), which would work as export promotion agencies for certain countries.

Opportunities in aerospace industry

  • The opportunities in the aerospace industry have been identified in the following segments - aircraft build work, aircraft Maintenance, Repair and Overhaul (MRO), helicopters, engine manufacturing and MRO work, line replaceable units, Unmanned Aerial Vehicles (UAVs) and upgrades and retrofits.

As already announced by the government, the policy states that a negative list of weapons and platforms will be notified with year-wise time lines for placing an embargo on import of such items from those dates.