Government Has Calmed Arms Policy to Augment Investment in Weapon Manufacturing Sector

Posted on: Nov-2017 | Aerospace & Defense

The Union Home Ministry has made the Weapon Manufacturing Policy liberal with the aim of strengthening the Make in India initiative. Under this, the compulsory renewal of license every five years has been abolished and the one time license fee has been started.

New weapon rules became effective recently according to a statement. Under the new rules, manufacturers will not have to seek prior clearance from the Union Home Ministry for supply of weapons to the central and state governments.

The aim of this initiative of the Government is to encourage investment in the manufacturing of arms, ammunition, and weapon systems in the country. According to the statement, this initiative is expected to create more jobs in this area.

According to the official statement, the licenses granted for manufacturing under the new rules will be valid for lifetime for the licensee company. In this way, the mandatory renewal of license has been abolished, which was necessary every five years.

The new rules will apply to those units that have been licensed by the Union Home Ministry to make small arms and ammunition.

According to this, the new rules have been effective from October 27, 2017, and this is expected to give strength to manufacturing activities in the country.

Under the new rules, for the increase in the quantity approved under the license, there will be no necessity to further take approval from the government. The manufacturer has to inform only the officials before this. Similarly, the license fee has also been changed.

Thus, looking at some huge decision initiated by the government, it seems that India is in a mood to make its place among the top strongest economy around the world. It’s Make in India initiative has also witnessed a significant support by the foreign market players, with the acceptance of the clause that the required manufacturing raw material and various required parts should be procured from the local vendors.

This move is also applicable for the production of ammunition and arms, which is expected to spur the growth of the Indian arms manufacturing market. Delay in weapon deliveries from the foreign manufacturing is also a major factor responsible for the growing demand of Indian arm manufacturers.