Proposed Changes to Defence Laws

A Niti Aayog working paper highlights recommendations to reform defence laws for a robust domestic supply chain and enhanced cybersecurity in the face of geopolitical and supply chain challenges.

Key Proposals

• Amendments to the Defence of India Act (1962) to bolster cyber resilience and address supply chain security and geopolitical risks.
• Enhancement of the Defence Production and Export Policy (2020) to incentivize domestic manufacturers and streamline export regulations.
• Revision of Defence Acquisition Procedures (2020) for simplified procurement and mandatory domestic sourcing of critical components.

Strategies for Improvement

• Economic competitiveness and growth enhancement.
• Global partnerships and strategic influence.
• Legal reforms and good governance.

Cybersecurity Measures

• Introduction of blockchain-based frameworks for supply chain integrity and compliance automation.
• Mandatory cybersecurity audits with penalties for non-compliance.
• Strengthening international defence cooperation through technology transfers and alliances with countries like the US, Russia, and Israel.

Economic and Structural Reforms

• Structural reforms to simplify taxation and reduce bureaucracy.
• Creating a more investor-friendly environment.

Defence Production Statistics

India's annual defence production increased by 174%, from ₹46,429 crore in 2014-15 to ₹1,27,265 crore in 2023-24, with a target of achieving ₹3 lakh crore by 2029.

Review and Implementation

• The working paper is under review by top officials and may soon be shared with stakeholder ministries.
• Proposes a review committee for periodic updates to defence procurement and cybersecurity laws.