Issuing of Licenses to Private Firms for Defence Production 

The total procurement for three services (Army, Navy and Air Force) for year 2014-15 was Rs. 78753.85 Crores, out of which the procurement from indigenous sources was Rs. 49531.55 Crores. The value of production of Defence Public Sector Undertakings (DPSUs) and Ordnance Factories in the same year was Rs. 46936 Crores.

Since the opening of defence manufacturing sector for private sector participation in 2001, so far, 333 Industrial Licenses have been issued by the Government to 201 Indian companies for manufacture of various licensable defence items. So far 51 Companies, covering 81 industrial licenses, have reported commencement of production.

During 2015-16, the Government has issued 75 Industrial Licenses to 56 Indian private companies for manufacture of various defence items. Till date, none of these companies have reported commencement of production.