India on Wednesday wooed investors to capitalise on the ecosystem prevailing in the aerospace and other sectors and pitched for joint venture partnerships, saying it offered a big market in Defence manufacturing.
Defence Minister Nirmala Sitharaman receives a miniature helicopter as a memento at Aero India 2019
Bangalore:
“Hundred per cent FDI is possible now in the defence sector, so I invite all investors to consider to capitalise on the ecosystem which prevails for Aerospace and other segments which can help manufacturing in India,” Sitharaman said in her inaugural remarks.
India also had a robust supply chain with 10,000 micro, small and medium entrepreneurs who make 80 per cent of the components, aggregates and assemblies of complex weapon system and aircraft, she said.
She said between 2014-15 and October 2018, as many as 150 contracts worth about Rs 1,27,500 crore had been signed with Indian vendors for procurement of defence equipment for armed forces.
Also in the same period, Sitharaman said the government has recorded acceptance of necessity for 164 proposals worth Rs 2,79,650 crore under various categories of capital procurement including Make in India and Buy Indian.
“This means the request for proposal are issued to the Indian vendors,” she said. The defence ministry is ensuring that procurement orders are given to Indian vendors, she added.
Defence Minister Nirmala Sitharaman made the pitch for investment seeking to give a big push for the ‘Make in India’ initiative at Asia’s premier air show, Aero India, which began at the Yelahanka air base, north of Bengaluru.
Eyeing India’s multi-billion-dollar market, global defence majors are showcasing technologies and products including helicopters, fighter jets and transport aircraft at the five-day mega event.
“Hundred per cent FDI is possible now in the defence sector, so I invite all investors to consider to capitalise on the ecosystem which prevails for Aerospace and other segments which can help manufacturing in India,” Sitharaman said in her inaugural remarks.
Noting that India has manufactured till date more than 4,000 aircraft, she said there was a “great possibility” for the Original Equipment Manufacturers (OEM)s from abroad to come and find joint venture partners.
She said the OEMs have a “captive market” and they could scale up production, besides making exports from India.
India also had a robust supply chain with 10,000 micro, small and medium entrepreneurs who make 80 per cent of the components, aggregates and assemblies of complex weapon system and aircraft, she said.
She said between 2014-15 and October 2018, as many as 150 contracts worth about Rs 1,27,500 crore had been signed with Indian vendors for procurement of defence equipment for armed forces.
Also in the same period, Sitharaman said the government has recorded acceptance of necessity for 164 proposals worth Rs 2,79,650 crore under various categories of capital procurement including Make in India and Buy Indian.
“This means the request for proposal are issued to the Indian vendors,” she said. The defence ministry is ensuring that procurement orders are given to Indian vendors, she added.