Defence Minister Manohar Parrikar said during Question Hour that huge costs will have to be incurred if certain components are produced in small numbers and it would be better to buy it from open market.
He said this in response to a supplementary on by when India will be 100% self-reliant in defence production.
Also Read
Referring to the 'Make in India' initiative, he said under the 'Make one' programme, government funds 90% of the project cost and the manufacturer has to develop the item to the satisfaction of the forces within two years. If that happens, then the government buys that item.
Under 'Make two', the industry puts its money to produce an item which, if found satisfactory, is purchased by the forces.
In his written response, Parrikar said the expenditure in respect of orders placed on foreign vendors, primarily from countries like US, Russia, Israel and France, have come down from Rs 35082.10 crore in 2013-14 to Rs 24992.36 crore in 2014-15 and Rs 22422.12 crore in 2015-16.
He said even in cases where current operational exigencies necessitate import of defence equipment, efforts are made to ensure the involvement of Indian industry as production agencies and offset partners.
He also clarified that no target is fixed for import of defence equipment and therefore, no separate budgetary allocation is made against such targets.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
)