Defexpo India 16th - 19th of February 2008 International Land and Naval Systems Exhibition

The Defexpo India exhibition was conceptualised in the year 1998 by the Department of Defence Production, Ministry of Defence Government of India in partnership with the Confederation of Indian Industry with an objective to promote defence exports from India at the same time exhibit the capabilities of Indian Defence R&D and production. The Defexpo India exhibition which began in 1999 with 197 exhibitors, had by its 4th edition grown to one of the internationally recognised defence exhibitions in the world.

Defexpo India has witnessed an unprecedented growth over the years. Larger national and international participation could be mobilized for Defexpo India. CII, the MoD partner for organisation of Defexpo India Exhibitions, facilitated the platform of Defexpo India to involve Indian Industry and foreign defence manufacturers to establish technological tie-ups and joint ventures. Further, Defexpo India was optimally used to generate inputs which could be considered by the Ministry of Defence while formulating the National Defence Industrial policy.

Production of defence equipment has been under the purview of Government right from its inception. The Industrial Policy of the country had kept defence production in the public sector since First Industrial Policy outlined in the Industry Policy Resolution of 1948. The Industries (Development & Regulation) Act, 1951 gave statutory base to the Industrial Policy. Under this policy, the Defence Industry, which required heavy investments, strong R&D backing and on which there could be total reliance because of its criticality, remained under Government Control at all times. The control over defence industry was exercised under the Industries (Development & Regulation) Act, 1951, which made licensing compulsory. As a consequence of the then industrial policy, a large infrastructure for Defence production consisting of 39 Ordnance Factories, 8 Defence PSUs and 50 Research & Development laboratories was created in the country.

However, contrary to the common perception, the Private Sector has been playing significant role in the Defence industry sector as sub contractors and ancillary industry. The private sector mainly has been involved in supply of raw materials, semi-finished products, parts and components to Defence PSUs and Ordnance Factories to a great extent and also to Base Workshops of Army and Base Repair Depots of Air Force and the Dockyards of the Navy. Defence PSUs and Ordnance Factories are outsourcing their requirements from private sector (mainly SMEs) in the range of 20-25%. Out of this outsourcing, about 25% requirement is met through small-scale sector.

The economic liberalization in 1991 resulted in the high degree of deregulation and allowed the private industry to progress more rapidly.

After opening up of defence production for the private sector, the industry has shown keen interest in this field. Many large industries have shown definite inclination to invest both in R&D and infrastructure to develop capabilities in defence production to assume the role of system integrators.

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