In a push to the government's Make in India initiative, the Department of Industrial Policy and Promotion (DIPP) has cleared 19 proposals for grant of industrial licence, which includes applications for defence production. Clarity in policy and higher FDI for defence (up from 26% to 49%) helped clear these proposals, many of which were languishing for several years. Licence validity has also been increased from 2 to 3 years.

Additional 14 proposals also got the go ahead, as the requirement of industrial licence for manufacturing certain defence components was dropped recently by the government. In fact, critical items requiring licence have been reduced to mere 16, classified as defence items. The above clearances will be notified shortly. The new government has taken series of measures to facilitate the ease of doing business in India. The current step to clear 33 proposals will lend major boost to advanced manufacturing in the defence sector and further the ultimate goal of indigenous manufacturing in defence, encouraging the private sector.

Commenting on Edelweiss Research, said, ''Given that opportunities in the domestic defence space is very large which the private sector cannot afford to miss, delicencing for defence manufacturing and grant of industrial licence to major defence products will lend the much required fillip to the advanced defence manufacturing in India. We continue to like Bharat Electronics and Astra Microwave in this sector and have a 'Buy' rating on both the stocks.''

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