Niti paper for defence laws' update to boost 'Make in India'

A Niti Aayog working paper has proposed changes to defence laws to facilitate a resilient domestic supply chain for in-house manufacturing and address challenges of cybersecurity more comprehensively.

Amidst evolving geopolitical tensions, cybersecurity threats and global supply chain disruption, the paper said this is vital for national security and operational readiness.

The security and law division of the Aayog has proposed these changes. The other suggestions include strategies to enhance economic competitiveness and growth, global partnerships and strategic influence, and legal reforms and good governance.

The working paper is under review by the top officials of the Aayog and could soon be shared with stakeholder ministries for consideration and action.

"A strong security framework is essential for long-term peace and prosperity. This involves modernising defence forces, enhancing cybersecurity infrastructure and improving border security," it said, adding it is crucial to strengthen internal security to address threats such as terrorism, cyberattacks and internal conflicts.

The proposed amendment to the Defence of India Act (1962) seeks to address cyber resilience, supply chain security and geopolitical risks. The paper also calls for the enhancement of the Defence Production and Export Policy (2020) to provide incentives for domestic manufacturers and simplify export regulations.

It has proposed a review committee for periodic updates to defence procurement and cybersecurity laws.

Revision of Defence Acquisition Procedures (2020) is suggested to simplify procurement processes and mandate domestic sourcing for critical components.

"Introduce blockchain-based legal frameworks for supply chain tracking, contract integrity and compliance automation, and enforce mandatory cybersecurity audits while imposing penalties for non-compliance," it added.

"Additionally, India should strengthen international defence cooperation through technology transfers, strategic alliances with countries like the US, Russia and Israel, and joint cybersecurity initiatives to counter emerging digital threats," it suggested.

India's annual defence production stood at ₹1,27,265 crore in 2023-24, an increase of 174% from ₹46,429 crore in 2014-15 and the target is to achieve ₹3 lakh crore of indigenous production by 2029.

Other proposals include structural reforms to simplify taxation, reduce bureaucracy and create a more investor-friendly environment.