Related to Make in India initiative for Arms and Ammunition being taken by the Current Government from the year 2014.

1. MAKE IN INDIA-FOR
ARMS AND AMMUNITION
Presented By: Swasti Chaturvedi & Saniya
Khan
nd
SUBJECT: FINANCE AND
ECONOMICS-II
(MANAGEMENT ECONOMICS)
SUBMITTED TO:
MR. ANKIT WALIA

2. INTRODUCTION:
 The Indian Defence Industry is unveiling several
new products like the HAL (Hindustan Aeronautics
Limited) Tejas Light Combat Aircraft, Penetration-
cum-Blast etc.
 India has the 2nd largest military in the world
(https://www.worldatlas.com/articles/29-largest-
armies-in-the-world.html ) and is also the 5th
biggest defence spender.
(https://en.wikipedia.org/wiki/List_of_countries_by
_military_expenditures )
 As per the recent Govt. report, unfortunately,
around 60% of defence related requirements are
met through imports.
 Also, India spends around 30% of its total
Defence Budget on capital acquisitions.

3. HAL TEJAS LIGHT COMBAT
AIRCRAFT:
TOP SPEED: 2,205 km/h TOTAL COST: 160 Crore (US$25

4. OBJECTIVES OF THIS
INITIATIVE:
 Government of India’s liberalised ‘Arms Rules’
are meant to boost ‘Make in India’ policy and
generate employment in Arms and Ammunition
manufacturing sector.
 The new rules require licencee of arms/
weapons to recruit technical staff and conduct
trial runs.
 With favourable government policy, there will
be self-reliance, technological upgradation and
achievement of economies of scale.

5. GOVERNMENT ACTIONS:
EXPENDITURE:
 India has been spending worth nearly $3.5 billion
to boost its military equipment.
ARMS EXPORTS:
 In December 2017, India confirmed its deepened
military cooperation where it will upgrade
Myanmar's T-72 Tanks.
FDI:
 The Government of India also opened up the
Foreign Direct Investment from 49% to 100% and
thereby increasing flow of funds from foreign
countries.

6. PM MODI WITH COUNSELLOR
SUU KYI:

7. Cont’d:
 The defence budget has been hiked by 7.81% to
Rs 2,95,511 crore amid expectations of a higher
allocation due to heightened tensions with both
PAKISTAN and CHINA. (TIMES OF INDIA,
INDORE DATED 2nd FEB PAGE NO. 5)
 The Modi government in its first year cleared 39
capital procurement proposals (investment
projects).
(https://www.ndtv.com/topic/make-in-india-
defence-sector)
 Under the new rules, the licence granted for
manufacturing will be valid for the lifetime of the
licencee company.
(https://www.ndtv.com/topic/make-in-india-
defence-sector)

8. FIGURES:
DEFENCE BUDGET 2018-
2019:
SOURCE:
https://www.indiandefen
cereview.com/spotlights/
defence-budget-2018-
19-the-imperative-of-
controlling-manpower-
cost/

9. TOTAL P&A OF ARMED
FORCES:
SOURCE:
https://idsa.in/issue
brief/india-defence-
budget-2017-
18_lkbehera_03021
7

10. COMPARISON:
SOURCE:
https://www.
defproac.co
m/?p=2079

11. CONCLUSION:
 “Government will bring out an industry friendly
defence production policy to promote domestic
arms production by public and private sector as
well as MSMEs”, said Finance Minister Arun
Jaitley, adding that two defence induction
production corridors will be set up.
 Defence Minister Nirmala Sitharaman said:-“This
paves the way for the first defence production
corridor to come up in Tamil Nadu. Linking small
and medium units running from Chennai, Mysore,
Coimbatore, Salem and Tiruchirappali right up to
Bangaluru. The two corridors will encourage
MAKE IN INDIA”

12. RECOMMENDATIONS:
 Government of India can prepare a proper
plan of local capability of Indian Defence
Industry to facilitate decision making.
 To avoid more involvement of private
companies in such important sector.
 To promote the method of Digital Licencing of
Arms or Weapons for decreasing time
consumption.
 To improve quality and increase quantity of
arms or weapons.
 To provide more transparency in such sector.

13. REFERENCES:
 https://www.defproac.com/?p=2079
 https://idsa.in/issuebrief/india-defence-budget-2017-
18_lkbehera_030217
 https://www.indiandefencereview.com/spotlights/defen
ce-budget-2018-19-the-imperative-of-controlling-
manpower-cost/
 https://www.makeinindia.com/sector/defence-
manufacturing
 https://www.quora.com/What-is-the-
%E2%80%98Make-in-India%E2%80%99-project-A-
personal-insight-on-how-this-is-going-to-shape-the-
economy-of-India-in-the-coming-few-years-would-be-
an-added-bonus
 https://www.ndtv.com/topic/make-in-india-defence-
sector