Rajnath Singh reaffirms Government’s aim to achieve $26 billion Indian defence industry by 2025
New Delhi: Union Defence Minister Rajnath Singh has called for an increased and active participation of the private sector in defence manufacturing to achieve the Government’s target of making the Indian defence industry worth $26 billion by 2025.
He was addressing the captains of industry at the 22nd India International Security Expo, 2019 (Defence & Homeland Security) here on Friday.
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.
Raksha Mantri stressed that in its present set up of ‘Minimum Government and Maximum Governance’, the Government plays the role of a facilitator and the duty of the industry is to work in tandem to realise the vision of ‘New & Strong India’.
He hoped that the industry partners will come up with concrete investment and technological intervention proposals related to defence and avail the business opportunities present in the sector.
He said, there is a need to make the system investor friendly and create a conducive atmosphere for the growth of defence production with an increased participation of the private sector.
Rajnath Singh assured the defence industry that the Government is open to new ideas and remains committed to harness the entrepreneurship spirit and energies of the private sector.
“As a friend, philosopher & guide, the Government is ready to hold frank discussions, even on issues and problems,” he said.
Singh 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 held in Lucknow from Feb 5 – 8.
Sharing his vision of making India an economic powerhouse and global superpower, Singh said, he wants that every citizen of the country feels safe & secure and works for the progress of the nation to the best of his/her ability.
Describing the recent decision to reduce the Corporate Tax rate as historic, Singh said, the step reflects the Government’s commitment to boost growth and investment.
Rajnath Singh also listed out the recent measures taken by the Ministry of Defence under ‘Make in India’ programme, including for Start-Ups & MSMEs, to further enhance the participation of Indian industry.
He said, Defence Procurement Procedure (DPP) 2016 has been revised to promote domestic defence industry. Raksha Mantri also highlighted that the majority of capital procurement approvals given by the Defence Acquisition Council are indigenously developed or produced.
“Buy India – Indigenously Designed, Developed & Manufactured (IDDM) has been introduced to promote indigenously designed & developed defence equipments,” he added.
On the Defence Industry Corridors in Uttar Pradesh & Tamil Nadu, Rajnath 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 the Defence Minister 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.
The 22nd India International Security Expo, 2019 (Defence & Homeland Security) has been organized from 03-05 October 2019 by Indian Trade Promotion Organisation (ITPO) in collaboration with Punjab, Haryana and Delhi (PHD) Chamber of Commerce and Industry, Ministry of Defence, Ministry of Home Affairs, Ministry of External Affairs, Ministry of Micro, Small and Medium Enterprises (MSMEs) and Defence Research & Development Organisation (DRDO) among others.
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