New Delhi, October 4: To achieve the Government’s target of making the Indian defence industry worth $26 billion by 2025, Raksha Mantri Rajnath Singh has called for increased and active participation of the private sector in defence manufacturing. He also assured the defence industry that the Government is open to new ideas and remains committed to harnessing the entrepreneurship spirit and energies of the private sector.
He was addressing the captains of industry at the 22nd India International Security Expo, 2019 (Defence & Homeland Security) today.
Rajnath Singh reaffirmed the Government’s aim of inclusive growth and making India a $5 trillion economy by 2025, adding that the defence sector will play a pivotal role in achieving this goal. “Our aim is to make a world class domestic defence industry that is self-reliant and less dependent on imports”, he added.
Singh said, “As a friend, philosopher & guide, the Government is ready to hold frank discussions, even on issues and problems.” Raksha Mantri expressed confidence that the Indian Defence Industry will touch newer heights and make India a major defence manufacturing hub. He invited domestic as well as foreign defence manufacturers to participate in DefExpo 2020 to be held in Lucknow from 05 – 08 February.
On the Defence Industry Corridors in Uttar Pradesh & Tamil Nadu, Singh said, the corridors are being established to provide state-of-the-art infrastructure for the setting up of defence production facilities. He said, the corridors will not only encourage regional industry but also develop a well-planned & efficient industrial base to promote defence production.
The other initiatives highlighted by Raksha Mantri include - allowing 49% FDI through automatic route and more than 49% FDI through government route; liberalisation of Industrial Licensing to remove barriers for manufacturers, especially SMEs; simplification of ‘Make’ procedure; notifying ‘Strategic Partnership’ model for Indian entities to develop a long-term partnership with Original Equipment Manufacturers (OEMs); setting up of ‘Defence Investor Cell’; end-to-end online offset processing portal to promote transparency and efficiency; and formulation of iDEX framework to encourage Indian Defence Sector innovations.