Monthly Archives: December 2019

India, US hold 9th DTTI meet

During the 9th meeting of India-US Defence Technology and Trade Initiative (DTTI), a joint Statement of Intent (SoI) that formalized their intention to co-develop a range of cutting-edge war fighting technologies and systems has been signed on 24 Oct 2019. The projects include three short-term projects, two mid-term projects and two long-term projects for co development.

No Custom Duty, GST on Defence Imports

The Indian Government has exempted customs duty and Goods and Services Tax (GST) on imports of specified defence goods not being manufactured indigenously until 2024. With such exemption applicable wef 01 Oct 2019 around Rs 25000 Crores will be saved due to waiver of customs duty while GST exemptions will augment the defence budget by Rs 35000 Crores...

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OFB Corporatization

The Defence Ministry has set up a high-level committee to address the concerns raised by workers federations on safeguards to protect the interests of employees in terms of wages, health facilities and other service matters due to converting OFB into a public sector entity. The Terms of Reference (ToR) of the committee is to lay road-map for increasing...

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FDI up to 74% in Defence?

India allows up to 49% Foreign Direct Investment (FDI) in defence through the automatic route and it needs Government approval to go beyond the cap. There are indications to raise the limit for automatic clearance to 74% along with relaxation in other conditions. Some of the other issues under consideration for the ease of doing business are:

Incentives for Start-ups

The Government said to have notified special exceptions in its procurement policy to promote startups and will encourage them to bid for contracts valued less than Rs 150 Crores without the burden of providing financial credentials if they can prove technical expertise. Besides, the Government has also come up with Defence Innovation Fund (DIF) under which a maximum...

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IDEEA launched

The Army chief launched the Indigenous Defence Equipment Exporters Association (IDEEA) with the objective of making India one of the top three defence equipment exporters in the world. Conceived as a non-profit association, IDDEA will effectively be a nodal agency for receiving and processing export inquiries from all prospective customers across the world. The association will include all...

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DAC to Consider Additional P8I

The Defence Acquisition Council (DAC) will be considering purchase of additional 10 P8I maritime reconnaissance aircraft for the Indian Navy from US based manufacturer Boeing. The deal worth USD 3 Billion is a follow on order. The contract is expected to be signed in 2020 at the earliest with the first aircraft likely to be delivered to...

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DAC Meet in Oct 19

The Defence Acquisition Council (DAC) accorded approval for Capital Procurement over Rs 3300 Crores for three indigenously designed and developed equipment manufactured by the Indian industry. Two projects under the 'Make-II' Category are:-

  • Third generation Anti-Tank Guided Missiles (ATGM) to provide 'Fire and Forget' and “Top Attack” capabilities to the troops in an armoured battle.
  • The...
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OGELs for export of Defence Parts

The MoD has issued two Open General Export Licences (OGELs) for export of certain parts and components and intra-company transfer of technology to select countries including Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico. The items permitted under OGEL includes components of ammunition and fuse setting device without energetic and explosive...

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Defence Sector Growth

The current size of the Indian economy is around USD 2.7 Trillion and goal is to make it to USD 5 Trillion by 2024 and subsequently to USD 10 Trillion by 2030-32. India is also aiming to achieve a turnover of USD 26 Billion in the defence sector by 2025. Achieving the target would require an investment...

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