Indian PM Promises Incentives to Indigenous Defense Manufaturers
Published By : 18 Feb 2015 | Published By : QYRESEARCH
Indian PM Narendra Modi once again demonstrated his dedication to his ‘Make in India’ mission by promising a promising environment for defense manufacturers based in India. His stated aim is to reduce and eventually eliminate India’s dependence on defense imports. A tax policy free from discrimination was the first of undoubtedly many announcements to come in the near future, in a speech where he stated the days of foreign investors looking at India as merely a market were about to become the past. He urged foreign investors to adopt the roles of strategic partners rather than sellers.
Modi was speaking at the 10th Aero India Show in Bengaluru, which he inaugurated. Defense Minister Manohar Parrikar was also present. Modi stated his aim to reduce India’s dependence on foreign defense imports by propelling the share of indigenous defense manufacturing to 70% in the next five years and boosting a homegrown defense manufacturing sector that viewed its work like a mission.
To foreign investors gathered at the convention, Modi said that though India remained a major business opportunity for most of them, India would be ready to throw off these shackles. To hear about India’s reputation as the number one defense equipment importer would please many of them, but this was one area, among many, doubtlessly, in which India would like to shake off the tag of leading the world. India’s security challenges, caused due to the geopolitical complications with Pakistan and China, are well known, as is their need to upgrade and modernize their defenses and increase defense preparedness.
Being the second most populous country in the world also brings with it the added burden of managing the country’s internal security, where modern technology and weapons systems are being increasingly incorporated.
India’s defense industry employs around 200,000 people and produces an annual output of US$7 billion.