Defence Procurement and Production Scenario in India

Report Overview:

With a budgetary allocation of nearly Rs. 2,47,000 Crore in FY 2015-16, defence remains a major expenditure head in the Union finances. The Ministry of Defence had appointed a committee of experts in May 2015 to “evolve a policy framework to facilitate ‘Make in India’ in defence manufacturing and align the policy evolved with the Defence Procurement Procedure 2013”5 and “to suggest requisite amendments in DPP 2013 to remove the bottlenecks in the procurement process and simplify/rationalize various aspects of the Defence Procurement”. This brief is an analysis of historical and current defence procurement policies.