India to develop defence industrial corridors

02 February 2018

The Indian government has announced two more initiatives to boost indigenous defence industrial capability and reduce reliance on imports.

In his budget speech on 1 February, Finance Minister Arun Jaitley said the government will develop “two defence industrial production corridors” within the country and that it will update its Defence Production Policy (DPrP) “to promote domestic production by public sector, private sector, and MSMEs [micro-, small- and medium-sized enterprises]”.

While Jaitley did not elaborate on the corridors’ initiative, the Indian Ministry of Defence (MoD) confirmed in a press release that the first of these will be established in the country’s southernmost state of Tamil Nadu to link Chennai, on the west coast, to Bangalore, 300 km to its east.

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