1. Indian cabinet approves policy for strategic partnerships in defence

Indian cabinet approves policy for strategic partnerships in defence

India approved on Wednesday a long-awaited policy to boost local defence manufacturing by effectively picking industry champions that would tie up with foreign players and make high-tech defence equipment.

By: | New Delhi | Updated: May 24, 2017 8:05 PM
defence, defence india, arun jaitley, india defence equipment, Narendra Modi, Larsen & Toubro, Mahindra Group, Tata Group, reliance group Prime Minister Narendra Modi has vowed to end India’s role as the world’s largest arms importer by getting foreign firms to impart technology to local players and then manufacture in India. (Representative Image: Reuters)

India approved on Wednesday a long-awaited policy to boost local defence manufacturing by effectively picking industry champions that would tie up with foreign players and make high-tech defence equipment. Prime Minister Narendra Modi has vowed to end India’s role as the world’s largest arms importer by getting foreign firms to impart technology to local players and then manufacture in India. Under the “Strategic Partnership” model, the government will shortlist and then pick Indian companies to join forces with foreign firms to supply fighter jets, helicopters, armoured vehicles and submarines.

“For each platform, one private sector strategic partner will be chosen,” Defence Minister Arun Jaitley told reporters after the cabinet’s Committee on Security cleared the policy. He said the policy was designed to encourage manufacturing by assuring the selected companies of future orders. “You don’t set up a manufacturing facility if you don’t have any hope of getting orders,” he said.

Government and industry representatives have been haggling over the details of the model for more than a year, delaying the launch of tens of billions of dollars worth of deals.

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Indian firms Larsen & Toubro, Mahindra Group, Tata Group and recent entrants Reliance Group and Adani Group are all expected to compete fiercely to become one of four strategic partners. Foreign manufacturers such as Lockheed Martin, Boeing, BAE Systems, Airbus and Saab are looking to India as one of the biggest sources of future growth.

Modi and Jaitley were keen to get the project approved before the prime minister completes three years in office on May 26. Modi then heads off next Monday to Germany, Spain and Russia, where defence procurement will be high on the agenda. In June Modi is expected to visit the United States, which has emerged as one of the top arms supplier to India in recent years.

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    Tulasiram Singh Bondili
    May 27, 2017 at 9:05 am
    Defence eqipmt manufacturing industry is long awaited dream which rightly implemented by our Sri Modiji it gives immence confidence n security to not only to India but also to friendly countries of India besides Economy elevates
    Reply
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    Dr.Girish Choudhary
    May 25, 2017 at 3:39 pm
    This was supposed to be done long back, but previous govts were busy pick-pocketing, thanks to Modiji for doing this now, better late than never. Modiji is taking bold decisions and doing things which were to be done 20-30 yrs ago. Modiji should be elected as PM for another 3 terms, 20 yrs of his service as PM will change the face of India on domestic front as well as global. Definitely India will reattain the "Jagat Guru" le and if i am not exaggerating the "Sone ki Chidiya" le too. There are people who are critically biased and oppose for the sake of opposing, ignoring country's good, they are highly corrupt and power hungry, indulging in gathbandhan politics to loot. Hope people of India are sensible enough.
    Reply
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    Ashish Jha
    May 24, 2017 at 10:38 pm
    Good step. It will not only save substantial amount of economy but will also boost the future growth of the defence equipment and future ties with other countries. But it will take time to become self reliant in defence sector.
    Reply

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