MISSION DEF SPACE

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Context

• Mission DefSpace has been launched by the Indian government with 75 Defence Space Challenges aimed at encouraging the indigenous design, development, and manufacture of defence equipment.
• Private industries, including start-ups and MSMEs, are eligible to apply for the challenges.
• The government has also implemented several policy initiatives to promote self-reliance in defence manufacturing and technology.

Goal of this Mission

• According PM Narendra Modi the Space technology is an example of what security will mean for any strong nation in the future.
• To encourage innovation and strengthen the defence forces by innovative solution in space technology.
• To encourage Private Industries, Start-ups, MSMEs and Individual Innovators in indigenous design, development and manufacture of defence equipment in space sector.
• To energize space diplomacy with developing countries like Africa and with ASEAN countries.
• Atmanirbhar in the Defence Sector

Government Initiatives

• Priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020.
• Simplification of Industrial licensing process with longer validity period
• Liberalization of Foreign Direct Investment (FDI) policy allowing 74% FDI under automatic route
• Launch of Innovations for Defence Excellence (iDEX) scheme involving start-ups & Micro, Small and Medium Enterprises (MSMEs)
• Implementation of Public Procurement (Preference to Make in India) Order, 2017
• Launch of an indigenization portal namely SRIJAN to facilitate indigenization by Indian Industry including MSMEs
• Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers
• Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu
• Opening up of Defence Research & Development (R&D) for industry, start-ups and academia with 25 percent of defence R&D budget and Progressive increase in allocation of Defence Budget of military modernisation for procurement from domestic sources.

Challenges

• The low budgetary allocation towards Defence manufacturing R&D. India’s R&D expenditure as a percentage of GDP is only 0.7 percent, compared to 2.8 percent in the United States, 2.1 percent in China, 4.3 percent in Israel, and 4.6 percent in South Korea.
• The invasion of space domain by commercial enterprises, as seen during the Russia-Ukraine conflict by SpaceX and Maxar has unfolded a new area in the war on convergence.
• The militarisation of space domain in recent years and challenges from China.

PRACTICE QUESTION Q) The goal of Mission Défense Space is to provide the private sector an opportunity to finally operate in India’s defence space sector. Discuss. (250 words)

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