Defence Industrial Corridor

Aim to Reduce dependency on Imported Defence Equipments

The Indian Defence industry is going through a rapid change where the nation is not just focusing on expansion of Defence market but also is looking at arenas to strengthen indigenous manufacturing under ‘Make in India’ scheme, a vision of the Hon’ble Prime Minister. Furthermore, with Indian Armed Forces being the 2nd largest armed forces in the world, the country spends a substantial amount on Defence & Aerospace equipment. It is one of the largest importers of arms with a share of 9.5% of world import between 2014-18.The Union Budget 2020-21 has also allocated around $47.47 Bn (excluding Defence pension) for Defence, out of which 1/3rd is dedicatedly allocated for capital expenditure. 

Where on one hand the nation is welcoming foreign players to enter the Indian Defence market through opening up FDI, as they provide for more than 50% of Defence equipment procured, it is also focusing on development of Indian OEMs by encouraging collaborations like joint ventures, partnerships, offsets etc. with an aim to decrease foreign dependency.

With the above objective, it was decided that two Defence Industrial Corridors would be developed, in Uttar Pradesh and Tamil Nadu, and was announced during the Union Budget of 2018-19