The progressive reforms undertaken by India have encouraged foreign original equipment manufacturers (OEMs) to establish their presence in the country, Defence Minister Rajnath Singh said during an interaction with the senior leadership of US defence companies on Saturday.
Increased Foreign Investment
He mentioned that OEMs from the US and other countries are setting up manufacturing units in India, developing joint ventures, and using India as an alternative export base. During an industry round-table organized by the US-India Strategic Partnership Forum, Singh outlined various emerging co-development and co-production opportunities in the defence sector in India.
Key Milestones and Initiatives
Singh highlighted that the planned co-production of GE 414 aero-engines in India will be a significant milestone in India-US bilateral relations. He emphasized that ‘Partnership’ and ‘Joint Efforts’ are the two key elements differentiating India’s defence industry partnerships from those of other nations.
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Industry Participation
The event saw the attendance of senior leadership from prominent US defence and technology companies, including Boeing, GE, General Atomics, General Dynamics Land Systems, L3 Harris, Lockheed Martin, Raytheon Technologies, Rolls Royce, and ThayerMahan. Indian companies such as ideaForge, Tata Sons, and Tsecond, along with senior leaders from The Cohen Group, also attended the interaction with the Raksha Mantri.
Growth in Indigenous Defence Production
The Indian government is working towards achieving “Aatmanirbharta” (self-reliance) in the defence sector through a multi-pronged approach. The Ministry of Defence has achieved the highest-ever growth in indigenous defence production in value terms during the Financial Year (FY) 2023-24.
Record Production and Export Figures
According to data from Defence Public Sector Undertakings (DPSUs), other PSUs manufacturing defence items, and private companies, the value of defence production in the country has reached a record-high of Rs 1,26,887 crore, reflecting a growth of 16.7% over the previous financial year. The value of defence production in FY 2022-23 was Rs 1,08,684 crore.
Of the total value of production in 2023-24, about 79.2% has been contributed by DPSUs and other PSUs, while 20.8% has come from the private sector. The data indicates steady growth in defence production across both sectors. Additionally, defence exports reached a record-high of Rs 21,083 crore in the financial year 2023-24, reflecting a growth of 32.5% over the previous fiscal year, when the figure was Rs 15,920 crore.
(Except for the headline, this story has not been edited by Newsx staff and is published from a syndicated feed.)
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