Bengaluru: With the defence ministers of several countries, head honchos of global defence majors and chiefs of armed forces of many nations forming his audience, Prime Minister Narendra Modi pitched for FDI in his “Make in India” programme on Wednesday.
“From sellers, foreign firms must turn into strategic partners and use India as part of their global supply chains. India can also be a base for exports to third countries in view of our growing defence partnerships in Asia and beyond. We are focusing on developing our defence industry with a sense of mission with ‘Make in India’ programme at the heart.
“We are also reforming our defence procurement policies and procedures, with a clear preference for equipment manufactured in India,” he said while inaugurating Aero India 2015, attended by over 600 companies from 30-odd nations at Yela-hanka Air Force Station. The PM also noted that India’s inexpensive manufacturing and engineering services sector could help foreign firms reduce costs significantly.
The PM said though the fact that India was the largest importer of defence equipment could be “music” for some delegates, for him Aero India 2015 was not just a “trade fair” for defence equipment but a platform to launch the indigenous defence manufacturing sector.
“A nation with a strong defence industry cannot only be more secure, but also reaps rich economic benefits,” he said, pointing out that even a 20-25 per cent reduction in import of armaments would create an additional 1,20,000 skilled jobs in the country.
In all, 72 military and civil aircraft and helicopters are on display at the air show, with some of them demonstrating their prowess in the skies.
Mr Modi said government had raised the permitted FDI level in defence to 49 per cent, and this could be hiked further if the project brings state-of-the art technology. “We have permitted investments up to 24 per cent by foreign institutional investors,” he added.
