Bengaluru: Prime Minister Narendra Modi on Wednesday stressed on the need for manufacture of defence equipment to equip ourselves for the future and called upon foreign defence manufacturers to become strategic partners as he inaugurated “Aero India 2015” in Bengaluru on Wednesday.
PM Modi said, “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, “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.”
India has an annual defence budget of about USD 40 billion of which 60 percent 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.
PM Modi also said, “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.”
He also stated that India has the basic building blocks for building a domestic capabilities and a large national requirement.
PM Modi had expressed dissatisfaction on the part of the public sector.
He said, “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.”
He also ensured significant policy change to facilitate private sector while addressing private sectors concerns for level playing field in defence manufacturing.
He said, “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.”
Commenting on one of the most crucial areas- offsets that have so far not yielded transfer to critical technology to the country, Modi called for a need to exploit offset as an opportunity to acquire state of the art technology. “Our procurement procedures will ensure simplicity, accountability and speedy decision making. I want our offsets policy not as a means to export low-end products, but to acquire state-of-the art technology and skills in core areas of priority,” he said.
Bureau Report
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