INSUBCONTINENT EXCLUSIVE:
It's important to rationalise import duties and GST on components and spares to fight price escalation.This year's Union budget is
unique in the sense that it's the first budget in known history to be held amid a pandemic
The measures taken would be unique to address the prevailing economic damage the Covid-19 pandemic is caused
sector has had a rather busy build-up given a set of policy roll outs over the last year
Defence Acquisition Procedure (DAP) 2020, released and made effective since October 2020, could well be described as a comprehensive
potentially viable alternative in catering to short-term limited needs of the Indian military
A significantly improvised offsets programme (including withdrawal of offsets in G2G procurements) can be expected to bring about a lot more
transparency and ease in administration, even as the list of eligible offsets avenues appears truncated and offset banking is omitted in the
Strategic Partnership (SP) model has had a modest beginning thus far; one can hope, the improvisation carried out to extant guidelines will
help spur indigenisation of defence manufacturing capabilities under this procurement category
manufacturing was enhanced to 74 per cent (from extant 49 per cent) under automatic route; proposal for higher FDI continues to require
However, the press note (PN 4/20) does raise a set of concerns as to the intended outcome as the language of the dispensation leaves itself
open to varied interpretations, especially for brownfield investments and those not subject to the requirement of industrial licensing
Additionally, government's intent to develop India into a maintenance, repair and operations (MRO) hub will need comprehensive policy
should firmly set out aspirational targets for defence manufacturing and export growth
Given the busy build up this sector has seen in last 12 months with the roll out of Defence Acquisition Policy, new guidelines for offsets
management and strategic partnership model, it's time for the indigenisation programme to begin taking deep roots and deliver
Certain tax and duty rationalization can be expected in regard to imported components and spares
right opportunity for the government to roll out a comprehensive programme of fiscal and non-fiscal support to promote investments in
for capital outlays (significantly higher than Rs 1.13 trillion allocated for FY21), especially given the geopolitical scenario the nation
finds itself in, prudence is likely to prevail in the present rather difficult fiscal circumstances the government would be faced with.
