Rajnath Invites American Defence Companies To Cooperate On Manufacturing And R&D In India

According to a statement from the Ministry of Defence, Defence Minister Rajnath Singh has urged US corporations to establish production facilities in India and forge technical partnerships with Indian industries to build a secure global supply chain.

On October 20, 2022, as part of the 12th DefExpo in Gandhinagar, Gujarat, he was giving a session that was jointly organised by the US-India Business Council (UIBC) and Society of Indian Defence Manufacturers (SIDM). New Frontiers in US-India Defense Cooperation: Next Generation Technology, Innovation, and Make in India was the focus of the event.

Singh claimed that during the past eight years, the Indian defence industry has undergone revolutionary change as a result of ongoing reforms. He emphasised that via institutionalisation of various measures for ease of doing business and increased transparency, predictability, and predictability, these reforms have produced an atmosphere that is favourable for the expansion of the Indian Industry.

According to the ministry, the defence minister emphasised that the path to “Aatmanirbhar Bharat” is a comprehensive set of policy frameworks that aims to develop indigenous technological and production capacity & capability through cooperation, participation, and collaborations with reputable institutions and Original Equipment Manufacturers (OEMs) from friendly nations.

He explained that the concept behind “Make in India, Make for the World” is to manufacture in India for the Indian market as well as export to friendly nations.

“The key goal is to meet the needs of the Indian Armed Forces while also establishing long-term connections to the global supply chains of the international OEMs to satisfy global demands.

In order to provide our country and our allies, including the US, with uninterrupted and dependable access to defence technology and other key resources, India looks forward to cooperating for a safe and resilient global supply chain. Private sector businesses from the US can explore the enormous potential for “Creating in India” and “Exporting from India” as India’s defence industry expands “Added Rajnath Singh.

In order to accomplish this goal, the government has taken a number of measures, some of which were emphasised by the minister. These measures include expanding the number of procurement categories to encourage greater participation from the Indian industry and to entice foreign firms to locate manufacturing operations there.

“We are thrilled to collaborate with the US, our esteemed partner, to deepen our business and strategic ties and to entice US investment for establishing a high-tech defence industrial environment in India. Along with generating wealth and jobs, cooperation with US businesses would be a significant strategic force multiplier for India “Added he.

The relaxation of FDI rules and the inclusion of Buy (Global-Manufacturer in India) in the Defense Acquisition Procedure 2020 were described by Singh as an invitation to US companies to take advantage of the opportunities provided by the Indian defence industry.

He claimed that in order to take advantage of the “Make in India” opportunity, US corporations can now establish manufacturing facilities on their own or in collaboration with Indian enterprises through a joint venture, a technology agreement, etc. He exuded optimism that the companies will find India to be an alluring investment location for the production of defence.

The Positive Indigenization Lists, which comprise a wide range of devices and systems, were hailed by Rajnath Singh as another significant step in the development of the nation’s mature defence industrial base.

According to him, the list has boosted domestic R&D by luring new investment into manufacturing and technological capabilities and by giving Indian businesses a degree of demand assurance.

The project agreement to co-develop Air-Launched UAVs under the aegis of the India-US Defence Technology and Trade Initiative was hailed as a positive development by the defence minister.

He said that businesses from both sides can look at other DTTI projects, such as a platform for intelligence, surveillance, target acquisition, and reconnaissance and a response to unmanned aerial systems.

Singh emphasised that, in addition to making contributions in the domains of business and finance, Indians have played a significant part in the scientific advancement of the US, whether it be in the IT industry, biotechnology, space, or cyber technology.

He asked US business and technology leaders to work with Indian industry to create a comparable economic miracle in India, noting that the US creates a favourable environment for people to succeed and has reaped the advantages of doing so. The minister emphasised that maintaining the momentum of India-US defence relations will depend on finding fresh ways to collaborate at the industrial, scientific, and academic levels.