Over 10,000 Micro Small and Medium Enterprises (MSMEs) have joined the Indian defence sector with an increase being witnessed in research and development, start-ups, innovation and employment, Defence Minister Rajnath Singh revealed on Tuesday.
Singh also called upon the defence industry to identify and manufacture state-of-the-art cost-effective products/technologies to realise Prime Minister Narendra Modi’s vision of a ‘New India’ that not only caters to its own needs but also fulfils international requirements.
Addressing the 5th Annual Session of the Society of Indian Defence Manufacturers (SIDM) in New Delhi, the Defence Minister pointed out that the constantly-evolving global scenario has led to increasing demand for military equipment across the world, with countries focussing on bolstering their security systems.
The session was organised on the theme ‘India@75: Shaping for India@100’ with the aim to position India as one of the top countries in defence manufacturing.
He urged the industry to take advantage of this current “golden period” of the Indian defence sector, exhorting them to further enhance their participation through increased investment in the two defence corridors set up in Uttar Pradesh and Tamil Nadu, with the aim to achieve the vision of ‘Aatmanirbhar Bharat’.
Speaking at the 5th Annual Session of Society of Indian Defence Manufacturers (SIDM) in New Delhi. https://t.co/DUEnxgj2gf
— Rajnath Singh (@rajnathsingh) September 27, 2022
“According to a recent report of Stockholm International Peace Research Institute (SIPRI), in 2021, world military spending crossed US $2 trillion for the first time. It has increased by 0.7 per cent as compared to 2020 and 12 per cent as compared to 2012,” said the minister.
“Our armed forces will also spend a substantial amount on capital procurement in the years to come. This shows that the security needs of the world are set to increase. India is capable of meeting those needs, both in terms of quality and cost-effectiveness. Public sector, private sector, academia and research and development organisations, with SIDM as their nodal point, must continue to work together to achieve this objective,” he added.
He asserted that the government fully understands the importance of a fool-proof security apparatus and is constantly working towards bolstering all dimensions of national security to take the country to greater heights.
“Only a secure and strong nation can achieve the heights of success. No matter how rich or knowledgeable a nation is, its prosperity is threatened if national security is not ensured. We are focussing on national security and economic prosperity to make India one of the strongest countries in the world,” he said.
Singh stated that former Prime Minister Atal Bihari Vajpayee considered the private sector a game-changer and the present government, led by PM Modi, is carrying forward that vision with great zeal. He said that the number of reforms undertaken by the Ministry of Defence in the last few years to increase private sector participation has created an enabling environment for defence companies to ensure the country’s holistic development as well as their own.
He listed the steps taken to encourage the private sector, including earmarking 68 per cent of the capital procurement budget for the domestic industry in 2022-23, out of which, 25 per cent has been allocated for the private sector. In addition, 25 per cent of the defence R&D budget has been earmarked for private industry and start-ups which will pave the way for the innovation of new defence technologies in India.
Other measures include the issuance of positive indigenisation lists; the unveiling of Defence Acquisition Procedure 2020; opening up of opportunities to build Mega Defence Programme including fighter aircraft, helicopters, tanks and submarines through a strategic partnership model and Innovations for Defence Excellence (iDEX) initiative which has created an ecosystem for innovation and technology development in defence and aerospace sectors.
The Defence Minister appreciated the fact the efforts made by the government have started to yield positive results as there has been an increase in the number of contracts being awarded to the domestic industry.
“Seven-eight years ago, our defence exports were not even Rs 1,000 crore. They have now crossed Rs 13,000 crore. We have set a target of Rs 1.75 lakh crore of defence production by 2025, which includes the export of Rs 35,000 crore,” he said.
Commenting on the recent surge in defence stocks, the minister stated that the increasing market valuation of the companies is a reflection of the trust of big investors, Services and the nation in the entities which are contributing to national security.
He termed SIDM as a bridge between the government and the industry, urging the companies to approach the association with any queries and grievances, assuring all support from his ministry. While commending the growth of SIDM, he stated that in just five years of its inception, about 500 members have joined the association, which is an indicator of the progress of the Indian defence industry.
Besides the top leadership of the Ministry of Defence, Indian Armed Forces, industry and foreign defence attaches based in India, Chief of the Air Staff Air Chief Marshal VR Chaudhari, Vice Chief of the Naval Staff Vice Admiral SN Ghormade and Vice Chief of the Army Staff Lt Gen BS Raju also attended the session.
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