CII welcomes notification on list of defence items requiring industrial licenses

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CII welcomed the much awaited joint initiative of Ministry of Defence and Ministry of Commerce and Industry to streamline procedures pertaining to Industrial Licenses.

Ministry of Commerce and Industry has issued a notification on List of Defence Items Requiring Industrial License. “We are happy to see that Ministry of Defence has taken cognizance of CII’s recommendations to prune the list and keeping it to the bare minimum” said Baba N Kalyani, Chairman, CII National Committee on Defence.

CII’s recommendations were guided by only one objective – simplification of the current policy and procedures. This step is important as it would bring more clarity to the procedures and will encourage new entrants into the defence sector.

Indian Defence Industry is already at the bottom of the value chain and there is very less incentive for anyone to set up a defense industry in India, for various reasons. CII has earlier recommended that by clearing ambiguities, ensuring transparency, offering a level playing field, laying down clear procedures, MoD can create conducive environment for the growth of the Indian defence industry as envisaged in the Defence Production Policy.

It is important to maintain a fair balance between addressing genuine security concerns and promoting India’s defence industry. Given the opportunity, this industry has the potential to generate large employment opportunities and provide much needed impetus to India’s manufacturing sector leading to its professed goal of self-reliance.We are also hopeful that the delays in granting / renewing Industrial Licensing would also be addressed at the earliest.