Prime Minister Narendra Modi on Wednesday in his usual rhetoric called to end India’s dependence on Defence imports. Speaking after inaugurating the 10th edition of Aero India 2015 at the Yelahanka airbase on the outskirts of Bengaluru, the Prime Minister asked scientists to innovate and develop products which are needed to India. He also said that this would improve economy and felt the Defence sector in India must evolve based on ‘Make in India’ concept to cut down dependency.
Making a strong pitch to end India’s dependence on Defence imports, Prime Minister Narendra Modi also promised a conducive environment for manufacturers, including a discrimination-free tax system, and asked foreign firms not to be just “sellers” but “strategic partners”. In his speech, Modi stressed the need to develop own products which are beneficial to the country and need to rope in private sector participation to boost defence output.
Prime Minister who witnessed some air display said while the country needs to increase its Defence preparedness and modernise its forces due to security challenges that were well known, it should aim to manufacture 70 per cent of military hardware domestically in next five years and remove the tag of being number one importer of defence equipment. Stressing that developing domestic defence industry “is at the heart of the ‘Make in India’ programme”, he 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. We need their technology, skills, systems integration and manufacturing strength,” he said. He said the foreign players can use India as part of their global supply chain and India’s frugal but sophisticated manufacturing and engineering services sectors can help reduce costs. Modi said India can be a base for export to third countries, especially because of its growing defence partnerships in Asia and beyond, he said. He assured the defence sector that the Government was reforming defence procurement policies and procedures.
“There would be a clear preference for equipment manufactured in India. Our procurement procedures will ensure simplicity, accountability and speedy decision making,” he said. The Prime Minister said India’s defence industry will succeed more “if we can transform the manufacturing sector in the country”. He said this is a new era for the defence industry in India and it will be no longer enough to buy equipment and simply assemble them here.
Talking about offsets system, he said this was a crucial instrument to develop and upgrade Indian Defence industry. “We have introduced significant reforms in our offsets policy. I am acutely aware that it still needs a lot of improvements. We will pursue them in consultation with domestic industry and our foreign partners,” he said adding that he wants 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.
Modi noted that his Government has raised the permitted level of Foreign Direct Investment to 49 per cent and this can go higher, if the project brings state-of-the art technology. Ruing that India spends “tens of billions of dollars on acquisitions from abroad”, Modi said the Government’s focus is to reduce imports and develop domestic Defence industry with a sense of mission which “is at the heart of our Make in India programme”.
Modi also spoke about involving country’s scientists, soldiers, academia, industry and independent experts more closely in research and development. later in the day Modi inaugurated Centre for Nano Science Engineering at the Indian Institute of Science in Bengaluru.Modi also unveiled the foundation stone of the Centre for Brain Research at IISc, which is being established as an autonomous centre at the country’s premier science institute. He also witnessed the signing of an MoU between ONGC and M/s Super Wave Technology Pvt ltd, envisaging development of new technology for drilling of oil and gas, an official release said. He also addressed the NIMHANS convocation.