05 February 2014

India: Defexpo India -2014 - A Backgrounder


The 8th edition of Defexpo India, a biennial exhibition on Land, Naval, Internal Security and Defence System is being organized by Ministry of Defence, Department of Defence Production, Defence Exhibition Organisation, from Feb 06-09, 2014 at Pragati Maidan, New Delhi - 110 001. Over the past few years the exhibition has maintained a path of sustained growth and is now considered one of Asia's biggest land and maritime show. The event has received an overwhelming response from national and international exhibitors.
The exposition would be showcasing India's capabilities in Land, Naval and Security Systems as well as its emergence as an attractive destination for investment in Defence Sector by providing a platform for forging alliances and joint ventures in the defence industry. The event also provides an excellent opportunity to the Indian Defence Public Sector Undertakings (DPSUs), Private Sector and other defence related industries to demonstrate their capability to design, develop and deliver a wide range of military and civil products/services.
In all, 624 companies, both foreign and Indian will be taking part, which is 57 more in number than the Defexpo 2012. A total number of 368 foreign companies are participating this year in the show, which was 232 in Defexpo 2012. Indian companies participating this year are 256 as compared to 335 in Defexpo 2012.

30 countries from different continents will be taking part in the exhibition. These are Australia, Austria, Belgium, Bulgaria, Canada, Denmark, France, Germany, Hungary, India, Israel, Italy, Japan, Netherlands, Norway, Poland, Russia, Saudi Arabia, Serbia, Singapore, Slovak Republic, South Africa, South Korea (RoK), Spain, Sweden, Switzerland, Turkey, UK, Ukraine, USA.
There are 12 country pavilions from France, Germany, Hungary, Israel, Italy, Norway, Poland, Russia, South Africa, South Korea, UK and USA.
Official delegates comprising 511 delegates from 52 countries are attending the show. Government invited 133 delegates from 36 countries who are also attending the Defexpo 2014, including ministers and high ranking officials.
The net area sold during this edition is 27,515 square meters and still booking from various participants is in pipeline and expected to be more than 27,700 square meters. The gross area of exhibition remains 45,000 square meters. (The net area sold during Defexpo 2012 was 27,150 square meter while gross area was 45,000 square meters)
B2B meetings, introduced during Defexpo2012 would also be arranged during this year for which additional space is being provided. B2B meetings are going to be very important in enhancing the capabilities of Indian Defence Industries, as the same would allow them to forge alliances with global players to increase domestic production of Defence Equipment etc.
A seminar on "Indigenisation of Defence Procurement: Global Partnerships Towards Joint Development and Indigenisation" has been planned on 06 and 07 February 2014. This seminar is likely to get good attendance and would be providing useful insights and feedback on defence procurement and offset procedures and indigenisation of various products and services.
It may be recalled that the Defence Production Policy – 2011 aims at achieving substantial self-reliance in the design, development and production of equipment/weapon systems/ platforms required for defence in as early a timeframe as possible. The policy also envisages to create conditions conducive for the private industry to take an active role and enhance the potential of SMEs in indigenisation and to broaden the defence R&D base of the country.
In pursuance of the Defence Production Policy (DPP) – 2011 and to promote indigenisation in Defence procurement, following major policy steps have been taken: .
  • In the revised Defence Procurement Procedure (issued in May 2013), 'Buy (Indian)', 'Buy & Make (Indian)' and 'Make' categories of procurement have been made as preferred categories over 'Buy (Global)' and 'Buy & Make with ToT'.
  • The Procedure for 'Buy & Make (Indian)' category of procurement has been simplified in the revised DPP to make it more attractive, clear and transparent for the industry.
  • The definition of indigenous content has been revised to provide more clarity and to enhance the real indigenous content in the Defence equipment.
  • The provision has been made to make any Indian company as MTOT partner in Buy (Global) cases. This is no longer reserved for DPSUs/ OFB, etc.
  • Technology Perspective and Capability Roadmap (TPCR) has been put up in public domain to provide the industry an idea about the future requirement of the Armed Forces.
  • The offset guidelines have been modified for leveraging capital acquisition to create capability of Indian industry to produce defence goods and to acquire critical defence technologies. The steps are being taken to further strengthen the offset guidelines.
  • The procedure for undertaking 'Make' projects is under revision to provide more clarity and to make it more attractive for the industry.
  • Raksha Mantri's Production Committee has been constituted for initiating actions for bridging technology gaps and augmenting indigenous Defence production capabilities.