From The Parliament - Make In India Initiative
India Strategic|September 2017

GOVERNMENT HAS taken various steps to encourage indigenisation and self reliance in defence. Under ‘Make in India’ initiative, Government has taken following initiatives:

- A new Defence Procurement Procedure (DPP), 2016 has been promulgated by the Government effective April 1, 2016 whereby a new category of procurement ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}’ which has been accorded top– most priority for procurement of Capital equipment. Besides this, preference has been accorded to ‘Buy (Indian) and ‘Buy & Make (Indian)’ categories of capital acquisition over ‘Buy (Global)’ and ‘Buy & Make (Global)’ categories. The ‘Make’ Procedure has been simplified with provisions for funding of 90 per cent of development cost by the Government to Indian industry and reserving projects not exceeding development cost of Rs 10 Crore (Government funded) and Rs. 3 Crore (Industry funded) for MSMEs.

- Foreign Direct Investment (FDI) Policy has been revised. FDI up to 49 per cent is allowed through automatic route and beyond 49 per cent under Government approval route wherever it is likely to result in access to modern technology or for other reasons to be recorded.

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