Defence Minister, Rajnath Singh has invited US companies to set up manufacturing units in India and develop technology collaborations with Indian industries. Singh highlighted that the increase in the number of procurement categories has been aimed to encourage greater participation of the Indian industry and attract foreign companies. “For India, collaboration with US companies would be an important strategic force multiplier, apart from being wealth and job creator,” he added.
The Minister shed light on the importance of defence exports, terming it as a key pillar for the long-term sustainability of the domestic defence industrial base and added that $5 billion dollar export target set for 2025 reflects the intent of the Government for export-oriented manufacturing.
Addressing a seminar jointly organised by US-India Business Council (UIBC) and Society of Indian Defence Manufacturers (SIDM) as part of the 12th DefExpo, the Minister stated that collaborations with reputed institutions and OEMs from friendly nations will help take forward the idea of ‘Make in India, Make for the World’.
“The main objective is to fulfil the requirements of Indian Armed Forces; and at the same time, create long-term linkages to the global supply chains of the foreign OEMs to meet global demands. Through these linkages, India looks forward to collaborating for a secure and resilient global supply chain for the free world to ensure uninterrupted and reliable access to defence equipment and other strategic materials for our nation and our partners, including the US. As India’s defence base grows, private sector companies from the US can explore the vast potential for ‘Creating in India’ and ‘Exporting from India’,” Rajnath Singh said.
He termed the easing of FDI regulations and introduction of Buy (Global–Manufacturer in India) in Defence Acquisition Procedure 2020 as an invitation for the US businesses to participate in the opportunities offered and set up manufacturing facilities, individually or in partnership with Indian companies.
Singh described the Positive Indigenisation Lists, in which a wide spectrum of equipment/systems are included, as another major step towards creating a mature defence industrial base in the country. The minister further described the project agreement to co-develop Air-Launched UAVs, under the auspices of the India-US Defence Technology and Trade Initiative, as a welcome development. He stated that industries from both sides can explore additional DTTI projects, such as a counter unmanned aerial systems and an Intelligence, Surveillance, Target Acquisition and Reconnaissance platform.