The Union government on Wednesday made a fervent call to defence manufacturers from around the world to invest in India, saying 100 per cent foreign direct investment is allowed in the segment.
In her inaugural address at the Aero India biennial air show here on Wednesday, defence minister Nirmala Sitharaman invited all defence manufacturers to capitalise on the full FDI option to make their products in the country.
As much as 49 per cent investments can be made through the automatic approval route and the rest after seeking the government’s permission.
“I invite all investors to consider to capitalise on the ecosystem which prevails in aerospace and other segments,” she told a gathering of defence ministers, officials and industry representatives from across the world.
“India provides a runway to a billion opportunities,” she said, urging foreign players to invest in the country. “You have an assured market, you have an assured and captive buyer in the Indian armed forces.”
The defence minister used the platform to project the achievements of the NDA government, saying that between 2014-15 to October 2018, 150 contracts worth Rs 127,500 crore have been signed with domestic defence vendors for procurement of equipment.
She highlighted figures from the state-run manufacturers, possibly to show they have not been ignored by luring foreign players.
“The value of production of Ordnance Factory Boards and defence PSUs has grown from Rs 43,476 crore in 2013 to Rs 58,163 crore in 2017-18, of which 40 per cent has been outsourced to the private sector,” Sitharaman said.
The air show being held at the Indian Air Force base in Yelahanka had been marred by Monday’s crash of two Hawk intermediate jet trainers that killed one pilot.
The inaugural event began with a two-minute silence in tribute to Wing Commander Sahil Gandhi, 38, who died when his Hawk jet collided with another during a rehearsal. The flying display included two manoeuvres as a mark of respect to the deceased IAF pilot.
A Jaguar, the indigenous Tejas Light Combat Aircraft and a Sukhoi-30 MKI paid a tribute by flying in a ‘Missing Man’ formation, an aerial salute in memory of their fallen compatriot. A Rafale fighter jet from Dassault Aviation carried out an ultra-slow manoeuvre in tribute to Wing Commander Gandhi.
MiG plan: Russia
India plans to buy 21 MiG-29 jet fighters and possibly
more from Russia, the deputy director of Russia’s federal service for military-technical cooperation was quoted as saying in Moscow on Wednesday. The report did not offer a possible time frame for the procurement plans, Reuters reported.
New Delhi last year agreed a deal with Russia to buy S-400 surface-to-air missile systems despite a warning from the US that such a purchase could trigger sanctions.
