2nd May, 2002
Ministry of Defence


The indigenisation of defence equipment is an ongoing process and is achieved by transfer of technology and indigenous research. Indigenisation of spares of defence equipment has been undertaken in aircraft, warships, armament, tanks, vehicles and electronic as well as engineering equipment.

While the Ordnance Factories and Defence Public Sector Units (DPSUs) are manufacturing a wide range of products for the defence forces, the private sector has been involved in the supply of raw material, semi-finished products, parts and components of defence equipment. The combined value of the products of Ordnance Factories and Defence PSUs during 2000-2001 has been approximately Rs. 14000 crore as against approximately Rs. 1800 crore on import of stores (which excludes capital equipment) comprising components, spares, overhaul etc.

The Government has recently allowed private sector participation in the defence industry upto 100 per cent and with foreign direct investment permissible upto 26 per cent both subject to licensing, for manufacture of all types of defence equipment within the country. This is expected to add to the investment already made in the public sector.

This information was given by the Defence Minister Shri George Fernandes in a written reply to Shri Y V Rao in Lok Sabha today.

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