India Development News & Foreign Investment Opportunities

Russians urged to jointly manufacture defence equipment with India

Orders for five year assured

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Orders for five year assured

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Defence Ministeri Rajnath Singh paying homage to Father of the Nation Mahatma Gandhi, at the premises of Embassy of India, in Moscow, on 5 November 2019.

Defence Minister Rajnath Singh has called upon the Russian Defence Industry to jointly manufacture defence platforms and equipment with India that will give a massive boost to the nations’ exports to third countries.

He was addressing CEOs of Original Equipment Manufacturers (OEMs) from Russian Defence Industry after jointly inaugurating ‘India-Russia Defence Industry Cooperation Conference’ with Russian Minister of Industry and Trade Denis Manturov in Moscow on 5 Nov 2019.

The Government is encouraging OEMs to partner with Indian entities making use of the ‘Make in India’ initiative.

He urged the Industry leaders to make use of the significant economic reforms undertaken by the Government to improve ease of doing business and opening up the defence manufacturing sector for foreign participation.

“We have set up defence corridors in Uttar Pradesh and Tamil Nadu and offer attractive terms for investment. India is ready to explore opportunities and co-production of high-end defence equipment with Russia. We want collaboration with you to modernise our defence platforms by advanced and emerging technology,” he said.

“Indian MSMEs seek footholds in the global supply chains with support from Russian and other foreign companies.”

Singh added that such industrial partnership can also address ‘After Sales Support of Equipment of Soviet or Russian origin’ already in Service with Indian Defence Forces.

The Minister highlighted the Intergovernmental Agreement (IGA) on Mutual Cooperation in Joint Manufacturing of Spares, Components, Aggregates and other material related to Russian or Soviet Origin Arms and Defence Equipment that was signed between India and Russia on 4 September 2019 during the 20th India-Russia Annual Summit at Vladivostok.

The IGA defines broad framework of cooperation for manufacturing of spares in India by way of collaboration between Indian Industry and Russian OEMs.

Singh also assured that India will provide orders for procurement of agreed quantities at mutually decided price for a period not less than five years.

He expressed hope that the manufacturing under the agreement in India will lead to reduction in cost, reduction in timelines of the supplies and progressive indigenisation of spares.

“We will soon share with the Russian side the list of spares and items, proposed to be manufactured in India. I hope that Russia will identify the OEMs in the next few months who can partner in production of these spares.

“We are eager to see several joint industrial activities in India on the basis of the agreement in near future,” Singh added.

He also invited the Russian manufacturers to participate in the forthcoming DefExpo 2020, to be held in Lucknow 5-8 February 2020.

The Minister is accompanied by a high-level delegation, comprising senior officials of Ministry of Defence and Federation of Indian Chambers of Commerce & Industry (FICCI). fiinews.com

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