Indian Defense Sector-Entry Rules Are In Place

Clubbing 'Make in India' initiative along with the aim of achieving a self-reliant locally indigenised ecosystem, the Cabinet Committee on Security has approved the policy on defence manufacturing known as 'Strategic Partnership' ("SP"), spearheaded by the Defence Acquisition Council ("DAC"). The idea behind the policy is firmly rooted in the recommendations of the Dhirendra Singh Committee capitalising on involvement of the private sector companies through long investments to develop the defence platforms.

Earlier, the production of major defence platforms and equipments was largely undertaken by the Defence Public Sector Undertaking and the Ordinance Factory Board on account of governmental support. Private sector participation, not being on an equal footing, the need was to institutionalise a transparent, objective and functional mechanism to encourage broader participation of Private Indian companies.