India moves to deregulate defence industry licencing

30 June 2014

India's federal government has moved to deregulate the production of some defence equipment, a move that aims to increase private participation in the local military-industrial sector and boost indigenous capabilities.

In a 25 June directive the Department of Industrial Policy and Promotion (DIPP) listed the types of defence equipment that will now require production licences: tanks and armoured fighting vehicles; air and space craft; and warships. Automatic and semi-automatic firearms, ammunition, and most intelligence, surveillance, and reconnaissance electronic equipment will also be subject to licenced production.

"Dual-use items, having military as well as civilian applications, other than those specially mentioned in the list, would not require industrial licences," the DIPP statement declared.

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