Public-private partnership can bring ‘defence production revolution’: Rajnath

Minister Rajnath Singh said strategic partnership model will help India’s private companies become global giants in the years to come. He added that defence exports have crossed ₹38,000 crore mark in the last seven years

Defence minister Rajnath Singh on Tuesday said the government has created an atmosphere of jointness to ensure modernisation of the armed forces in the rapidly evolving global security scenario. In his address at Society of Indian Defence Manufacturers (SIDM) annual meeting, he added public-private partnership can bring a “Defence Production Revolution” and help achieve the vision of “Aatmanirbhar Bharat (self-reliant India)”.

Rajnath said countries around the world are now focusing on modernisation of their militaries and the demand for military equipment is rapidly increasing. (PTI Photo)

“Through a strategic partnership model that will help our private companies become global giants in the years to come. The recent contract of 56 transport aircraft for the Indian Air Force is one such example,” he said. Singh added due to these steps, defence exports have crossed ₹38,000 crore mark in the last seven years. He said over 10,000 Small and Medium Enterprises have joined the defence sector and there has been an increase in research and development, start-ups, innovation, and employment.

“Countries around the world are now focusing on the modernisation of their militaries and the demand for military equipment is rapidly increasing due to emerging security concerns, border disputes and maritime dominance,” Singh said. “India is capable of meeting these needs through a cost-effective and quality approach. By India, we mean public sector, private sector, academia, research and development. We believe in taking them all on board together.”

Singh said the Indian defence industry is home to manufacturers who can create a perfect blend of state-of-the-art, high quality and cost-effective hardware to bolster national security and make India a “net defence exporter”.

He underlined the importance of indigenisation and spoke about the reforms undertaken to integrate the private sector and achieve Atmanirbhar Bharat. “The reforms include earmarking 64.09% of Capital Acquisition Budget for 2021-22 for domestic capital procurement and 15% of capital procurement budget for direct procurement from private industry; setting up of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu; introduction of Innovation for Defence Excellence; free Transfer of Technology through Defence Research & Development Organisation and increase in FDI in defence up to 74% through automatic route and up to 100% through government route.”