Defence Manufacturing

Advantage Rajasthan

Government of India has permitted

in Defence manufacturing
Rs. 100 crore allocated
as Technology Development Fund for R&D in the sector
across the state2283.9 hectares of land identified for setting up units

Fast Growing

The Indian defence industry is one of the fastest-growing global defence markets. India's defence market saw robust growth over the past decade. Government of India has recently permitted 26 per cent FDI in Defence manufacturing. The composite cap of foreign exchange is being raised to 49 per cent with full Indian management and control through the Foreign Investment Promotion Board (FIPB) route.

State Initiatives

Defence industry has been identified as one of the thrust sectors to promote and facilitate investments in Rajasthan. Steps have been initiated by the Government to boost the confidence of private sector to invest in the defence industries, which include:

  • Encouraging R&D
  • Higher degree of self-reliance
  • Indigenization
  • Import substitution

In the recent union budget announcement Rs100 crore has been allocated as Technology Development Fund for Research & Development in defence sector. The state government is working on strengthening of infrastructure, policy frame work and incentive structure for the defence sector. RIICO has already identified 2283.9 hectares of land across the state at various industrial areas to promote and encourage defence manufacturing units to set up their plants. As the present Union Government has opened up this sector for the inflow of private investment, which is one of the major sectors in 'Make in India' campaign, Rajasthan would like to take a lead in attracting private investment in this sector.