Defence Minister Arun Jaitley has hinted that incentives are being worked out to encourage domestic manufacturing in the defence sector so as to cut imports of combat planes, ships and submarines. In an interview to PTI, he said the government is working on a policy that will incentivise companies to set up manufacturing bases in India.
“We have so far liberalised our rules as far as investment is concerned... our companies, both defence PSUs and private sector companies have already started entering into arrangements with international majors with the object of establishment of manufacturing units in India,” he said.
But, with government being the only buyer, manufacturing units generally will be set up only after orders are secured. “Now, in the context of defence, government is the only buyer and therefore, people will establish units only if there is a likelihood of they getting business and therefore, our policies have to be tuned to this reality,” he said.