Describe the present perspective of indigenization of defence sector in India. What are the associated challenges? Also, discuss the steps taken by the government in this direction.
Answer: Indigenization of the defence sector refers to initiatives to reduce dependence on foreign exporters for defence technology and equipment and to promote indigenously manufactured defence instruments.
Perspectives on Indigenization of Defense Sector in India
- In the Union Budget 2022-2023, it has been recommended to reserve 25% of the defence budget for private entities and start-ups to implement innovations in defence technology.
- Between 2018-19 and 2020-21, government assistance has helped reduce the expenditure on defence purchases from foreign sources from 46% to 36%.
Challenges in the Way of Indigenization of Defence Sector
- Lack of institutional capacity hinders the ....
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