Indo-Asian News Service, Bangalore, Feb 17: Taking up the Narendra Modi government’s ‘Make in India’ campaign avidly, the defence ministry is pulling out all stops to ensure global firms invest in the fledgling aerospace industry so it can reduce imports and achieve self-reliance.
“In line with the government’s policy to promote greater indigenisation in the defence sector, the thrust of the air show this time is on making requirements for our services within the country and reduce imports overtime,” a senior official told IANS.
With ‘Make in India’ as the theme of the 10th edition of Aero India, the biennial expo will beckon global firms to become partners in developing the aerospace industry than being sellers only for the world’s third largest armed forces.
“As 60 percent of our defence requirements are met by imports, the objective is to reverse the trend and become self-sufficient in manufacturing military equipment and become an exporter,” defence exhibition organisation director M.D. Singh said ahead of the five-day mega event from Wednesday here.
The defence budget for 2014-15 fiscal was increased 12.43 percent to Rs.229,000 crore ($38.15 billion), with 40 percent of it being spent on capital acquisitions.
In comparison, China allocated $132 billion and Pakistan $7 billion for their annual defence expenditure this fiscal.
According to Union finance minister Arun Jaitley, who held the defence portfolio for the first five months of the NDA government, India is the largest buyer of defence equipment in the world as domestic manufacturing is still at a nascent stage.
To encourage global firms manufacture in India through joint ventures with Indian partners, the new government increased the foreign direct investment (FDI) in defence production to 49 percent from 26 percent this fiscal.
FDI above 49 percent will be allowed on case-to-case basis on approval by the cabinet committee on security, with access to technology.
The defence offset policy also has the potential to attract Rs.25,000crore (Rs.250 billion) for global and Indian firms over the next eight years.
To convince global manufacturers and suppliers that he means business and to woo them to invest in India than seek orders, Prime Minister Modi is flying here early Wednesday to flag off the air show along with defence minister Manohar Parrikar and top officials.
Of the 110 countries participating, the US is a major presence with a 64-member delegation, followed by France with 58 delegates, Britain 48, Russia 41 and Israel 25.
