On Friday, Defense Minister Rajnath Singh urged India’s defense industry to make new investments and put more emphasis on research and development to reach new heights.
Addressing the 117th Annual Session of the PHD Chamber of Commerce and Industry (PHD-CCI) held here, he said government has played the role of incubator, catalyst, consumer and facilitator for private industry.
“Make new investments, put more emphasis on research and development and harness its full potential to take the Indian defense industry to new heights. This effort on your part will be very important not only for the industry defense, but also for the overall growth of the country,” Singh said in a statement.
He said India’s defense sector has immense potential and even foreign companies see opportunities there.
Singh said India’s defense industry is making steady progress in partnership with the private sector.
“There was no way for the private sector in the past to enter the defense sector, and although there was some leeway, the industry was not ready to set foot in the defense sector for various reasons,” he said. in the statement.
Those reasons were “lack of political will, proper policy to incentivize their entry, high investment and long gestation period”, he claimed.
Government removed these bottlenecks and acted as an incubator, catalyst, consumer and facilitator in the case of private industry.
Several steps have been taken by the Ministry of Defence, under the “Make in India” and “Atmanirbhar Bharat” initiatives to change old traditions and create a manufacturing climate in which the public and private sectors could participate, Singh said. .
The Department of Defense has released three Indigenization Positive Lists of 309 items that will be procured from domestic vendors in accordance with standards. Three lists were also released by the Defense Public Sector Enterprises (DPSU), in which more than 3,700 are line replacement units, subsystems and other components, he said.
Additionally, an iDEX initiative has been launched to encourage innovators and start-ups.
The political decision was made to increase the limit of foreign direct investment to 74 percent through the automatic route and 100 percent through the government route in special cases, he said.
The government has taken several measures such as the introduction of defense industrial corridors — two industrial corridors have been set up each in Uttar Pradesh and Tamil Nadu, and the corporatization of the Ordnance Factory Board, which creates a win-win situation for the armed forces, industry, start-ups and innovators, he added.
“The magnitude of all these efforts is beginning to be felt. Today, we are not only producing to meet our own defense needs, but we are also serving the defense needs of many other countries as part of ‘Make for the World”. a great pleasure that defense exports have increased significantly from what we had before and reached Rs 13,000 crore last year.
“We were considered one of the largest arms importers in the world until now. But today we are one of the top 25 arms exporting countries. We have targeted a turnover of Rs 1.75 lakh crore in defense manufacturing, including Rs 35,000 crore in exports in aerospace and defense goods and services by 2025.” he said.
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