Explanation:

 Ministry of Defence is overseeing the project. To transform India into a global design and manufacturing hub, Defence Manufacturing was identified as one of the 25 key sectors. The announcement of setting up of two corridors – one in Tamil Nadu and the other in UP- exclusively for defence manufacturing in the current year’s budget, is a logical continuum to this policy of the Government. In the intervening period of almost 4 years, several steps have been taken to promote indigenisation in the defence sector. The inclusion of the Indigenous Design, Development and Manufacture (IDDM) category and giving it the top priority in capital acquisition, introduction of the Make Procedure, simplification of the licensing process and modification of the offset policy, are some of these steps. Introduction of a more industry friendly Defence Production Policy, further revisions to the offset policy, simplification of export and import processes are also in progress and are likely to be implemented soon. While these steps are all in the right direction, there is a need for focussed action at a localised level and develop specialised zones dedicated to various facets of defence production.