Minister urges US companies to develop technology collaborations with Indian industry
Lockheed Martin has shared its plans for establishing Maintenance and Repair Operations (MRO) and Multi Role Fighter Aircraft facilities in the country and integrating local manufacturers into the global supply chain.
The plans were shared during the ‘Invest for Defence’ investor outreach event organised as part of 12th DefExpo in Gandhinagar on 20 October 2022, said a statement from the Defence Ministry.
SAAB India also announced that it is planning to commence production of launchers in India by 2024, according to a statement.
Separately, Adani Defence & Aerospace has projected Rs.5,000 crore investments in priority areas of information processing, AI/ML, Unmanned systems etc at a panel discussion during the outreach event.
Additionally, Adani said that it is investing in UP Defence Industrial Corridor to set up an Ammunition facility.
It also shared a plan to set up the largest MRO facility to cater to both Defence and Civil areas.
These leading investors responded to Defence Minister Rajnath Singh’s calls on Foreign Original Equipment Manufacturers (OEMs) to take advantage of the opportunity to integrate into the global supply chains with Indian companies.
He also invited the OEMs to invest during the ‘Invest for Defence’ event.
Sharing the government’s future plans for the defence sector, he said that the target is to increase defence production from US$12 billion to US$22 billion by 2025. “This provides unparalleled opportunities for growth to the industry in the coming years.”
Foreign Direct Investment norms in the Defence sector have been liberalised to 74% through the automatic route, and 100% through government route and trading in stock markets has become more transparent, which has also benefited defence companies, he said.
“To increase the participation of domestic industry in the defence sector, the government has reserved 68% of the defence capital acquisition for domestic procurement for the year 2022-23, which is approximately Rs.85,000 crores, and 25% of this has been reserved for domestic private industry,” he said.
The Ministry of Defence is in the process of developing, in the next one year, a British-American multinational AoN bank of US$50 billion, according to the statement.
The Minister also urged the US-based companies to set up manufacturing units in India and develop technology collaborations with Indian industries to create a global supply chain free from vulnerabilities and uncertainties.
The Minister also addressed another seminar jointly organised by US-India Business Council (UIBC) and Society of Indian Defence Manufacturers (SIDM) as part of the 12th DefExpo in Gandhinagar on 20 October 20. It was organised on the theme ‘New Frontiers in US-India Defence Cooperation: Next Generation Technology, Innovation & Make in India’.
“The main objective is to fulfil the requirements of Indian Armed Forces; and at the same time, create long-term linkages to the global supply chains of the foreign OEMs to meet global demands,” he said.
“Through these linkages, India looks forward to collaborating for a secure and resilient global supply chain for the free world to ensure uninterrupted and reliable access to defence equipment and other strategic materials for our nation and our partners, including the US.”
As India’s defence base grows, private sector companies from the US can explore the vast potential for ‘Creating in India’ and ‘Exporting from India’, Rajnath Singh said. fiinews.com
