Stressing on the need for domestic manufacture of defence equipment to equip the country for the future, Prime Minister Narendra Modi called upon foreign defence manufacturers to become strategic partners as he inaugurated “Aero India 2015” in Bengaluru on Wednesday.
“We will build an industry that will have room for everyone – public sector, private sector and foreign firms. From sellers, foreign firms must turn into strategic partners,” he said.
In turn the PM asked foreign forms to make India part of their global supply chain.
ADVERTISEMENT
“We need their technology, skills, systems integration and manufacturing strength. The nature of industry is such that imports will always be there. In turn, they can use India as part of their global supply chain,” he said.
India has an annual defence budget of about $ 40 billion of which 60 per cent is spent on capital expenditure for purchase of equipment. But having failed to build a domestic defence manufacturing base India has the distinction of being the world’s largest defence importer.
This fact was not lost on the Prime Minister. While stating that he added: “That may be music to the ears of some of you here. But, this is one area where we would not like to be Number One.”
ADVERTISEMENT
At the same time, while stating that India has the basic building blocks for building a domestic capabilities and a large national requirement Mr. Modi expressed dissatisfaction on the part of the public sector. “Frankly, our public sector needs to do much better than they are doing now. We have to exploit their huge assets and a vast potential. At the same time, we have to make them accountable.”
In a major boost to address private sectors concerns for level playing field in defence manufacturing, the Prime Minister has assured significant policy changes to facilitate the same.
“We are reforming our defence procurement policies and procedures. There would be a clear preference for equipment manufactured in India… We are expanding the role of private sector, even for major platforms. Our goal is to provide a level playing field for all.”
Aero India started a decade ago has over time evolved as the Premier show in Asia. This year over 600 companies are participating including 295 Indian and 328 foreign companies.
In an indication of the growing the US inroads into Indian defence industry, US has the largest presence with 64 companies followed by France with 58 companies. US F-16 fighter aircraft did menuvour over Yelahanka Air Force station even though it was long out of the fighter aircraft competition for 126 fighter aircraft while Russian military aircraft will be conspicuous by their absence.