US companies are contributing to India’s defence exports, says Rajnath Singh
Defence Minister Rajnath Singh has invited the US companies for co-production, co-development, investment promotion and development of Maintenance Repair and Overhaul facilities in India.
“American companies are welcome to establish manufacturing facilities in India,” Rajnath Singh reiterated.
He pointed out that companies from the US have not only been a source of FDI and employment in India, but are also contributing to India’s defence exports, totalling around US$2.5 billion to their home market in last five years, which is 35% of total exports achieved during the period.
He exhorted the US companies to take advantage of the policy initiatives taken by the Indian Government and carry out joint R&D, manufacturing and maintenance of defence equipment to achieve the vision of ‘Make in India, Make for the World’.
The US entities participation in joint R&D and industrial collaboration with Indian public and private sectors will be important for the success of ‘Aatmanirbhar Bharat’ and further strengthening the US-India relationship.
Addressing the American Chamber of Commerce in India (AMCHAM India) through video conferencing during its 30th Annual General Meeting on 21 April 2022, the Minister noted, “Of late, some US companies have expanded their local presence in partnership with Indian industry to achieve our aim of ‘Make in India, Make for the World’.
“We believe this is just a beginning. With increasing business, we aspire for increased investments by US companies in India.
“Making full use of the Industrial Security Agreement, we need to facilitate collaboration and indigenisation of defence technology and boost the participation of US and Indian companies in each other’s defence supply chains.
He listed out a number of initiatives taken by the Government to facilitate partnerships between major Original Equipment Manufacturer (OEMs) and Indian companies.
“From increase in FDI limit to improving ease of doing business and from encouraging innovation through the iDEX platform to an enhanced positive list to give fillip to manufacture in India, the government is sharply focused on enhancing the share of defence manufacturing, export by India-based companies and joint ventures,” he said.
“There has been a rebound in bilateral trade between the two countries over the last year, surpassing US$113 billion in goods.
“In the same period, we have started to realise successes in the journey towards the Prime Minister’s vision of ‘Aatmanirbharta’ by increasing India’s participation in global supply chains and surpassing US$400 billion in exported goods for the first time in history. Trade and investment relationship with US is an important component of this success story,” he said.
Rajnath Singh added that during the 2+2 Ministerial meeting, India and US confirmed their intent to advance cooperation in Critical and Emerging Technologies such as advanced communication technology, artificial intelligence, quantum science, STEM, semi-conductors and biotechnology.
He urged the private industry to develop and undertake joint research and development projects, mobilise finance, promote technologies, and enhance technical collaboration.
He voiced the Government’s resolve to work together for the exchange of best practices and development of technology to enable affordable deployment and commercialisation of CET.
AMCHAM-India is an association of American business organisations operating in India. Established in 1992, AMCHAM has over 400 US companies as members. The principal objectives include promotion of activities that would encourage and stimulate investment by US companies in India and increasing bilateral trade. fiinews.com
