India Development News & Foreign Investment Opportunities

Huge opportunities in defence sector highlighted

Strategic partnership models notified

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Strategic partnership models notified

 

PIB.
Defence Minister Rajnath Singh addressing the gathering at the 52nd Annual General Body Meeting of Institute for Defence Studies & Analyses, in New Delhi on 8 August 2019.

Defence companies have huge opportunities in contributing to domestic market and exports, Defence Minister Rajnath Singh said on 9 August 2019 industry roundtable in Delhi.

The Minister said the strategic partnership model has been notified to establish defence manufacturing infrastructure and supply chain allowing Indian companies to choose a partner through a competitive and transparent process.

He voiced government’s desire to encourage private industry investment in defence sector while also strengthening defence PSUs and Ordnance Factory Board (OFB).

Singh highlighted the liberalized FDI policy in defence sector.

Regarding the offset processing, Singh said the Ministry has set up an end-to-end offset processing portal through which proposals of value US$1.5 billion were processed. Entry barriers for MSMEs were also reduced and this resulted in doubling of defence licenses issued to 440 in 2019 from 215 in 2014.

The Defence Investor Cell established a year ago in the Ministry has processed nearly 550 queries and grievances.

While highlighting various measures initiated by the government to encourage defence exports, Singh urged the industry to work towards increasing exports to friendly countries.

He said export procedure has been simplified and defence procurement procedure was revised in 2016 to encourage indigenous design, development and manufacture.

Self-reliance in defence sector would not be possible without development of indigenous technology, said Singh and called for steps to develop related technologies within the country.

There is greater possibility now because the contribution of digital technologies in defence sector is on the upswing and India has strong capabilities to develop such technologies where startups have a significant role to play, stressed.

The Indian defence industry’s production was Rs.80,000 crore in 2018-19, Rs.16,000 crore of which was the contribution from the private sector.

“Our nation is confidently scaling new heights based on strong political leadership strengthened by strategic economy,” said the Minister, calling for a multi-pronged approach to achieve the aim of ‘Make in India’.

The roundtable with CEOs of top Defence and Aerospace companies and themed ‘Make in India in Defence Industry’, was organised to obtain views and suggestions from the industry to further improve the systems and procedures in the defence sector. fiinews.com

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