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Indian defence exports surged in 2015

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Ministry Of Defence
New Delhi, March 28: As India focuses on enhancing domestic production of military hardware, a surge in its export was recorded in nine months to end-2015, with the net value touching almost $210 million (Rs.1,400 crore). According to the annual report of the defence ministry, the Defence Public Sector Undertakings (DPSUs), Ordnance Factory Board (OFB) and the private sector companies exported products worth Rs.1,397 crore from April to December 2015. The final figures for the fiscal ending March 31 are yet to be tabulated.

Exports in the financial year 2014-15 were valued at Rs.994 crore. “The trend in export shows phenomenal growth by the industry,” the defence ministry report said. It also lauded the role of private companies in the defence sector, stating that the exports by the sector had shown “accelerated growth” by 12-14 companies. The major destinations for defence exports from India include Afghanistan, Algeria, Belgium, Ecuador, Indonesia, Israel, Myanmar, Nepal, Oman, Romania, Russia, South Korea, Sudan, Vietnam and the UK. Among the major items being exported are Offshore patrol vessels, spares for radars, Cheetal helicopters, turbo chargers and batteries, electronic systems, light engineering mechanical parts and personal protective items, which comprise articles like helmets, bulletproof jackets and other types of clothing. The report also observed that the online system for NoCs (No Objection Certificates) which was started in November 2014 is working satisfactorily. In August 2015, the Standard Operating Procedures (SOP) for issuing NOCs for export of military stores by public or private defence industry were also revised. Under this, the requirement of an End User Certificate to be countersigned or stamped by the government authorities has been done away with for the export of items like parts, components or sub-systems. As the government promotes participation of private sector in defence manufacturing, the report also said that the Department of Industrial Policy and Promotion has issued 319 Industrial Licences to 190 companies till January 2016. Of these, 50 companies with 79 licences have started production. The new Defence Procurement Procedure (DPP) envisages providing a boost to the ‘Make in India’ initiative, enhanced role for private sector, and promoting medium and small scale industries. It also has a new category of Buy Indian — Indigenous Design Development and Manufacturing under which indigenously designed equipment with 40 percent content will be procured. According to Sweden-based think-tank Stockholm International Peace Research Institute (SIPRI), between 2011 and 2015 India was the largest importer of arms, accounting for 14 percent of the global trade. It, however, does not appear prominently in the list of defence exporters, with the top slot being taken by the US, which accounts for 33 percent of global arms export, according to SIPRI. According to the Institute’s analysis, adding together the data that states have made available on the financial value of their arms exports, the estimated total value of the global arms trade in 2013 was at least $76 billion. It adds that the true figure is likely to be higher.

Credits: IANS

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All You Need To Know About India’s Strategic Chabahar Port

The Chabahar Port is a seaport in Chabahar, which is on the Gulf of Oman, near Iran-Pakistan border.

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Chabahar Port is of great international significance in terms of trade, especially for India. Wikimedia Commons
Chabahar Port is of great international significance in terms of trade, especially for India. Wikimedia Commons

By Ruchika Verma

  • The Chabahar Port is of great strategic importance for India
  • It is in Iran and is being built and operated by India
  • This port will increase India’s trade with Central Asia and Europe

The Chabahar Port is a seaport in Chabahar, which is on the Gulf of Oman, near Iran-Pakistan border. Chabahar is the trans-shipment and logistics hub for the Makran Coast and Baluchistan province of Iran.

Chabahar Port is built and operated by India. Wikimedia Commons
Chabahar Port is built and operated by India. Wikimedia Commons

The tension between India and Pakistan is nothing new. There are several instances where both the countries have tried to obstruct each other’s political or economic agendas. This obstruction, along with other strategic reasons, resulted in the India and Iran’s deal on the Chabahar Port, which is crucial because of several reasons.

Here are few things about it you may not have known before :

  • Under the Trilateral Transit and Transport Agreement of 2016, the Chabahar port is the gateway to the Transport Corridor between India, Iran and Afghanistan, which allows multi-modal goods’ and passengers’ transport.

Also Read: India and Iran sign agreement to develop Chabahar Port

  • The agreement also states that India will develop and operate two berths in the first phase of the port. The contract is for 10 years and extendable. This time period excludes the first two years as they will be used for construction.
Chabahar Port will make India's trade with Afghanistan easier. Wikimedia Commons
Chabahar Port will make India’s trade with Afghanistan easier. Wikimedia Commons
  • The Chabahar Port’s first phase, which was developed by India, and inaugurated by Iran on 4th December 2017, is of great strategic importance as it makes it easier for India to conduct trade with Central Asia and Europe.
  • Iran’s Chabahar port is also important for India’s trade because of Pakistan’s reluctance in allowing India to send goods to Iran and Afghanistan through its land territory.

Also Read: Gwadar Port: China Turning Pakistan Port Into Regional Giant 

  • The development of Chabahar Port will increase the momentum of the International North-South Transport Corridor whose signatories include India, Afghanistan and Russia. Iran is the key gateway in this project. It will improve India’s trade with Central Asia as well as Europe.
    The Chabahar Port has also reduced Afghanistan’s dependence on the transit road, which went through Karachi. Now, trade can be conducted via Chabahar Port too. Islamabad has accused India of trying to use this development as a means to destabilise Pakistan.

    The Chabar Port is the said to be the counter to the Gwadar Port. Wikimedia Commons
    The Chabar Port is the said to be the counter to the Gwadar Port. Wikimedia Commons
  • The Chabahar Port also acts as a counter to the barely 100 km away, Gwadar port in Pakistan, which is developed by China. However, Iran has defended that Chabahar is not a rival to Gwadar and Pakistan is invited to join in its development.
  • In October 2017, India sent its first shipment of wheat to through Chabahar to Afghanistan, in order to test the viability of the route.
  • India will also construct a 900-km Chabahar-Zahedan-hajigak railway line that will connect Port of Chabahar to Hajigak in Afghanistan. It will also connect Mashad in the north, providing access to Turkmenistan as well as northern Afghanistan.This project is worth $1.6 billion.

    India will supply $400 million worth of steel rails to Tehrain. Wikimedia Commons
    India will supply $400 million worth of steel rails to Tehran. Wikimedia Commons
  • It is being said that India will supply $400 million of steel rails to Tehran. There are also possibilities of setting up a fertilizer plant through a joint venture with the Iranian government.