Explosive growth: How defence sector became a darling of investors
defence stocks.
A number of defence stocks, big as well as small, have been touching new highs in recent times. The defence euphoria in the market is fuelled by the government's resolve to indigenise defence production as well as boost defence exports. The defence sector has become a striking Make in India story. But behind this growth lies years of persistent efforts at the policy as well as execution levels.
How India is achieving defence atmanirbharta
India has so far indigenised 2,920 defence items out of 4,666 listed items, Director (DIP), Department of Defence Production, Amit Satija, said a few months ago. These items include assemblies, sub-assemblies, raw materials, critical spares and components. Air Chief Marshal VR Chaudhari has said that the IAF has indigenised more than 60,000 components in the last two to three years.
The indigenisation of defence items was part of Prime Minister Narendra Modi's Make in India ambitious programme. In 2015, the government issued a record 56 licences, permitting players such as the Mahindras, Tatas and Pipavav to set up production units. In comparison, the previous government cleared just 47 projects in three years.
The previous United Progressive Alliance government had introduced an 'offsets policy' that required overseas companies winning Indian military contracts to invest at least 30 per cent of the contract value in the local defence or aerospace industry. However, most projects were stuck in permissions and other processes. In 2017, the government revised the
