Prime Minister Narendra Modi on Wednesday admonished the public sector for underperforming and assured private players that the government would level the playing field for them to stoke growth.
After inaugurating Aero India 2015, Modi said it would no longer suffice to buy foreign equipment and simply assemble it in the country, without absorbing any technology. He said in some areas, India stood where it was 30 years ago.
“Our public sector needs to do much better than it is doing now. We have to exploit their huge assets. At the same time, we have to make them accountable.”
Modi said India was expanding the role of private sector, even for major platforms, and its aim was to create a level playing field.
“We speak in terms of national capacity, not public sector or private sector,” he said.
Addressing representatives from 49 countries, the PM said foreign firms must transform themselves into ‘strategic partners’ from sellers.
Making a strong pitch for making India a global manufacturing hub, Modi said India could serve as a base for export to third countries.
The PM said India had fine-tuned its export policies, removed industrial licensing requirements in several cases and was reforming its defence procurement policies.
Modi also said that the FDI cap could be higher than 49% if projects brought state-of-the-art technology into the country.