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MACHINIST - Government's Defence expenditure to rise: Shri A K Antony

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Government's Defence expenditure to rise: Shri A K Antony
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Written by Anand   
Monday, 26 January 2009

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SMEs, ancillary units expected to contribute to the defence Industry in positioning India as a global economic power

New Delhi: "As the security scenario is undergoing unprecedented changes, the defence industry has come to occupy centre-stage like never before - not only in our country, but the world over", said Shri A K Antony, Hon'ble Raksha Mantri.  Visibly enthusiastic about the dynamic prospects of Indian defence industry and emphasising on self reliance, he pointed out, "Though India has a vast defence industrial base; we still are a long way from establishing ourselves as a major defence equipment manufacturing nation."

The government is promoting private partnership with an aim of achieving self sufficiency in defence manufacturing from the present 30% to 70%. In DPP 2008 the provision of dual licensing for manufacturing of defence equipments has done away with. 

He was speaking at the National Seminar on Defence Industry, organised by the Confederation of Indian Industry (CII) and Institute of Defence Studies and Analyses (IDSA).

He further added, "In the backdrop the prevailing strategic developments the government will increase defence expenditure."

Mr. V K Mishra, Distinguished Fellow, IDSA, suggested developing ancillary industry to meet the need of the armed forces. Mr Mishra asked for sharing the potential long term order book for key requirements with concerned major private sector players before they could be expected to make long term and heavy investments. Strident pleas have been made by the private sector in the recent years of ending the practice of nominating the Production Agencies under the Ministry of Defence, even while the competitive domestic options could well be explored. 

Earlier in his opening remarks, Mr N S Sisodia, Director General, IDSA, stressed on the need to strengthen R&D environment in the Indian defence industry. He urged on the need for devising a long term road map and an advisory forum for public-private partnership in defence.

While stressing on the need for developing critical technologies indigenously, Shri Pradeep Kumar, Secretary (Defence Production), Ministry of Defence, stated, "The Government of India has been undertaking conscious decisions to strategically align the future needs of defence equipment.  Some of these include offset credit policy, private sector participation and ensuring a level playing field for the private industry players." 

Offering the vote of thanks, Dr Sarita Nagpal, Deputy Director General, CII, said, "We are at a threshold of new era, and the industry is optimistic with the policy initiatives. CII has been closely working with the government to address the defence industry's concerns. Apart from conventional big-time manufacturers, we are hopeful that the large SME base would be utilised towards attaining self sufficiency in defence."

Last Updated ( Monday, 26 January 2009 )
 
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