India will go with government-to-government deals to meet $5 billion military export target

The Modi government is going full steam to meet an ambitious target of $5 billion worth of military exports annually by 2025, reported the Economic Times.

The Indian government wants to encourage government-to-government deals, using lines of credit to friendly foreign nations.

It also has plans to brand the home developed weapons at international shows. In the draft Defence Promotion and Export Promotion Policy, the Defence Ministry has set a target for Defence PSUs and the Ordnance Factory Board to achieve 25% of their revenues from exports within the next five years.

To achieve this target, a more proactive role for Indian missions abroad has been planned along with an aggressive marketing campaign.

The draft policy reads, “Subject to strategic considerations, domestically manufactured defence products will be promoted through government-to-government agreements and lines of credit or funding”.

Some of the PSUs will be projected as export promotion agencies for specific nations. The earnings from such sale will directly be linked to the business generated, incentivising performance.

Right now the government is offering through direct the lethal Brahmos cruise missile system and the Akash air defence system. In the running are also the Tejas Light Combat Aircraft and a range of choppers manufactured indigenously.

Other products include torpedoes, fast attack craft and a range of naval systems.