India has the potential to become a reliable supplier of defence equipment globally to companies and friendly nations, said Union Defence Minister Rajnath Singh.

Inaugurating the AeroIndia 2021 on Wednesday at the Air Force Station, Yelahanka (Bengaluru), Singh said: “We have a strong and diversified MSME sector with more than 5,000 units active. Our vision is to make India one of the biggest countries in the defence sector, from design to production, with active participation of the public and private sector.”

To achieve the twin goals of self-reliance and exports, a target has been set to turnover of ₹1.75 lakh crore, including export of ₹35,000 crore, in aerospace and defence goods and services by the year 2024.

“I believe AeroIndia 2021 will boost investment, expand manufacturing ecosystem, support enterprises, appreciate and enhance the technology levels and propel the economic growth for the country,” said Singh.

Potential to be MRO Hub

Inviting business leaders from across the globe in the aerospace and defence sector, he said they should take advantage of the various initiatives of the government and set up manufacturing units. “India, therefore, holds a huge potential for investments in the aerospace sector, particularly in manufacturing of aero engines and sub-assemblies as well as in maintenance repair and overhaul of aircraft,” he said.

He further said: “India is also one of the fastest growing civil aviation markets in the world. With rising passenger and cargo traffic, demand for aircraft and the related supply chains is increasing. I am happy to inform that the reforms aimed at bringing ease in doing business have shown good results. India has recorded a jump of 14 positions against its rank of 77 in 2019 to be placed now at 63rd rank among 190 countries assessed by the World Bank.”

Domestic manufacturing of bigger and complex defence platforms has now become the focus of government’s policy under the ‘Atmanirbhar Bharat Abhiyan’.

Sangam

“We plan to spend $130 billion on military modernisation. India today offers a unique opportunity in defence and aerospace manufacturing. This opportunity comes as a ‘Sangam’ of rising demand, greater innovation, conducive policies and maturing ecosystem in defence and aerospace manufacturing sector,” the Minister said.

“The Newly introduced (Buy Global - Manufacture in India) category of capital procurement in DAP 2020 allows outright purchase of equipment from foreign vendors, followed by indigenous manufacture through its subsidiary in India or through a joint venture or through an Indian agency,” explained Singh.