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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.

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