Govt is committed to make defence industry export-oriented with India as a global manufacturing hub, says Raksha Mantri at 7th annual session of SIDM
Exhorts the industry to reduce import to export ratio with a target-oriented approach
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Oct 4, 2024: Raksha Mantri Rajnath Singh reaffirmed the government’s commitment to empower India's defence industry by working closely with them to realize Prime Minister Narendra Modi’s vision of making the country a global manufacturing hub. Addressing the seventh annual session of the Society of Indian Defence Manufacturers (SIDM) in New Delhi on October 4, 2024, Rajnath Singh described the ongoing Russia-Ukraine conflict as a reminder to build a strong defence industrial base that can be bolstered and expanded over time.
Rajnath Singh asserted that the government, in its third consecutive term, will provide renewed focus on its efforts toward developing a robust, innovative, and self-reliant defence ecosystem. He listed the steps taken to attain ‘Aatmanirbharta’ in defence, including the creation of defence industrial corridors in Uttar Pradesh and Tamil Nadu, issuance of positive indigenisation lists (PILs), corporatisation of the Ordnance Factory Board, support for private industries by DRDO, and the unveiling of the Defence Acquisition Procedure 2020.
On the 10 PILs notified with over 5,500 items, Rajnath Singh stated that the aim is to equip the Armed Forces with platforms and equipment manufactured on Indian soil. He termed the lists dynamic and encouraged the industry to achieve complete self-reliance for these items within the stipulated time while continuously shortening the list. He also urged them to assess and identify products that can be added to the PILs in view of the rapid changes in defence globally.
Rajnath Singh emphasised that the government’s efforts have created a conducive environment for ease of doing business in the country, with a focus on making India's defence industry export-oriented. While praising the private sector's contribution to defence exports reaching a record high of over Rs 21,000 crore in the 2023-24 financial year, he called on the industry to reduce the gap between export and import figures with a target-oriented approach.
He expressed satisfaction that annual defence production touched a record high of Rs 1.27 lakh crore in FY 2023-24, with the share of DPSUs at Rs 1 lakh crore, and private companies contributing Rs 27,000 crore. Rajnath Singh noted the potential for increasing private industry participation, aiming for at least half of total defence production, and promised full government support in achieving this goal.
Highlighting the government’s push to encourage foreign companies and Original Equipment Manufacturers (OEMs) to invest in India or form joint ventures with the private industry, Rajnath Singh called on SIDM to prepare a roadmap for collaboration on a firm-to-firm basis. He expressed confidence in the Indian industry's potential to bring niche technologies and processes to India.
Recognising the potential of small and medium enterprises (SMEs) and start-ups in the defence sector, Rajnath Singh acknowledged the challenges they face in achieving ease of doing business. He urged SIDM to work with the government to address ground-level issues and help these enterprises play a larger role in defence manufacturing. He stressed the need to ensure that policies translate into ease of doing business on the ground and encouraged SIDM to help identify practical challenges faced by start-ups and SMEs.
Rajnath Singh urged the industry to invest more in cutting-edge technologies like artificial intelligence (AI), cyber defence, and autonomous systems, which will shape the future of warfare. He reassured that the government is ready to provide all necessary support.
During the session, Rajnath Singh also presented the SIDM Champion Awards, which recognise outstanding achievements in defence manufacturing. He described the awards as a reflection of the dedication and excellence of Indian manufacturers, serving as a benchmark for best practices in the sector.
Chief of Defence Staff General Anil Chauhan, Secretary (Defence Production) Sanjeev Kumar, SIDM President Rajinder Singh Bhatia, and industry leaders were present at the session. The theme was ‘Empowering Indian Defence Industry: Catalysing Exports and Indigenous Innovation’, and it served as a forum to discuss India's growing role as a global defence exporter and innovation hub.