In a bid to reduce India’s dependence of defence imports, Prime Minister Narendra Modi has promised to create a supportive environment for manufacturers with a discrimination-free tax system. He has urged foreign enterprises to strategic partners in this initiative and not just sellers.
At the inauguration of 10th 'Aero India' Modi stated that India not only needs to prep up its arsenal of defence equipment, but the country also needs to modernize its forces to face the impending security challenges. He said that the country needs to manufacture about 70% of its military equipment in the coming five years and lose the label of biggest defence importer in the world.
He stressed on the fact that developing the defence manufacturing industry “is at the heart of the 'Make in India' program”. He also intends to build an industry that will accommodate foreign firms, private, and the public sectors in the coming future.
Foreign firms need to look at ways in which they can become strategic partners. He suggested at learning their skills, technology, systems integration, and manufacturing strength to enhance our production units. He also stated that the foreign enterprises can look at using India as an integral component of their global supply chain. If this is combined with Indian engineering and manufacturing services sectors it can sure lead to reduced costs. Additional impetus to the defence sector in India would be to use it as a base for exporting to third world nations as they are increasing their building defence partnerships in Asia.