Aim is to increase defence production to USD 22 billion by 2025

Defence Minister Rajnath Singh invited investment from domestic industry and Foreign Original Equipment Manufacturers (OEMs) in the Indian defence sector and take advantage of the opportunity to integrate global supply chains, during the ‘Invest for Defence’ investor outreach event organised during the day.

Commenting on the enthusiastic participation of domestic industry and businesses, he said the trust of the industry stakeholders is encouraging and reflects their faith in the Indian defence sector. He added that this is a golden period for Indian Defence Industry, which will be a sunrise sector in the years to come. Sharing the government’s future plans for the defence sector, he asserted that the target is to increase defence production in India from USD 12 billion to USD 22 billion by 2025. This provides unparalleled opportunities for growth to industry in the coming years, he added.

Rajnath Singh questioned the earlier view that there is a dichotomy between economic development and security, saying that they are complementary. He mentioned that this approach has changed in the past few years and now these two concepts are integrated, and they strengthen each other. “Today, the nation is integrating and moving forward with these two capabilities, which complement each other, and making unparalleled improvements in both,” said Rajnath Singh. He added that economic and strategic capabilities are essential for development of science and technology, health, agriculture, trade and commerce.

Speaking on the achievements of the Indian Defence industry, the Defence Minister said the domestic industry has demonstrated its capabilities by building Fighter Aircraft, Aircraft Carrier, Main Battle Tanks and Attack Helicopters and gained experience to build an ecosystem through these projects. “This experience will help in supporting and developing defence weapons/systems for future generations”, he added. He termed DefExpo 2022 as an excellent platform for existing and prospective investors to become a part of the phenomenal growth of the Indian defence industry.

Rajnath Singh highlighted that it is natural for investors to look for profit and offered a value proposition to investors in the Indian Defence Industry. He said the country has a skilled human resource and a healthy population and the government has taken several steps to strengthen this aspect. He spoke about the financial measures that have enabled banks to give loans and boost capital availability and led to establishment of a venture capital funding culture.

In the field of technology, the minister added that the government has improved lab to industry linkage for organisations such as CSIR and DRDO and introduced initiatives such as Innovations for Defence Excellence (iDEX) and Technology Development Fund to provide financial support for upgradation and innovation in products, systems, processes for the Armed Forces. Foreign Direct Investment norms in the Defence sector have been liberalised to 74% through the automatic route, and 100% through government route and trading in stock markets has become transparent, which has also benefited defence companies, he said.

 

Rajnath Singh added that the government has dedicated one fourth of the Defence R&D budget to industry led R&D to encourage private players in the defence sector. He stated that providing markets to industry is part of the Government’s commitment to build an ‘Aatmanirbhar Bharat’ and work is being carried out to provide market access to the domestic industry. “To increase the participation of domestic industry in the defence sector, the government has reserved 68% of the defence capital acquisition for domestic procurement for the year 2022-23, which is approximately Rs. 85,000 crores and 25% of this has been reserved for domestic private industry”, he said.

He stressed that all these measures have yielded results in increase in defence exports in the past few years. He ended his address by expressing confidence on the unlimited possibilities of growth of the Indian Defence Industry and invited businesses to invest in the sector.

‘Invest for Defence’, the first ever marquee event of Ministry of Defence, was targeted to promote investment in the defence sector in the country both by the Indian industry as well Foreign OEMs. It highlighted the requirements of the Armed Forces and policy reforms undertaken by the Government for ease of doing business in the defence sector. It provided the industry with the opportunities and the advantages of investing in the sector and thus contributing to maximising the indigenous production.

The event featured a panel discussion between the industry stalwarts and the MoD and Armed Forces leadership. A B2B interaction among the OEMs, including both DPSUs and foreign OEMs, was also held. It was enthusiastically received by domestic businesses, MSMEs and industry representatives in attendance. Officials from Ministry of Defence, central and state government were also in attendance.

India must set new goals according to changing times; R&D, with active private sector participation, key to deal with future challenges: Rajnath

India must set new goals according to the constantly-evolving global scenario and research & development, with active private sector participation, is the way to achieve the preparedness required to deal with future challenges, Rajnath stated while addressing a seminar ‘Aatmanirbharta in Defence R&D - Synergistic Approach’ organised by Defence Research & Development Organisation (DRDO).

“India has embarked on a journey of self-reliance of R&D in defence. Private sector will play a crucial role in taking us to the destination. Both public and the private sectors are the wheels, with which the R&D vehicle will move towards complete self-reliance. With collaborative efforts of the Government and the industry, we will realise the Prime Minister’s vision of ‘Make in India, Make for the World’,”Rajnath Singh said.

He also highlighted the crucial role played by DRDO in synergising the efforts of the industry, academia and Defence R&D towards fuelling India’s mission of ‘Aatmanirbharta’. He lauded DRDO for contributing towards enhancing the capability of the Armed Forces by developing various futuristic and first-of-its-kind innovations and technologies. He added that the organisation is no longer a sole service provider for defence R&D, but has also become a facilitator for in-house R&D and the private sector.

Rajnath Singh felicitated the ‘Dare to Dream 3’ winners and launched the ‘Dare to Dream 4’ contest to encourage innovation through the Indian scientific community. He congratulated the winners of Dare-to-Dream 3 and said that the contest promotes new ideas and innovative thinking in individuals and start-ups.

The Raksha Mantri also presided over the signing of MoUs with academic institutions and Naval Innovation and Indigenisation Organisation (NIIO), Indian Navy for the formation of DRDO-Industry-Academia - Centres of Excellence (DIA-CoEs).  The academic institutions included IIT Roorkee, IIT Jodhpur, IIT Hyderabad, IIT Kharagpur, IIT Kanpur, IIT BHU and Bharatiya University. These centres act as research nodes for the country in identified subjects which are building blocks for futuristic technologies. The MoUs with academic institutions will initiate the work in the focussed areas for advanced research in defence. Long term and short-term research areas will be balanced to address the current needs and lay the foundations for futuristic technologies.

India invites US companies to set up manufacturing units in India 

Rajnath Singh has invited US companies to set up manufacturing units in India and develop technology collaborations with Indian industries to create a global supply chain free from vulnerabilities and uncertainties. He was addressing a seminar jointly organised by US-India Business Council (UIBC) and Society of Indian Defence Manufacturers (SIDM).

The seminar was organised on the theme ‘New Frontiers in US-India Defence Cooperation: Next Generation Technology, Innovation & Make in India’.

Rajnath Singh stated that the Indian defence industry has been witnessing transformative changes for the last eight years through progressive reforms. He stressed that these reforms have created a conducive environment for the growth of the Indian Industry through transparency, predictability and institutionalisation of several measures for Ease of Doing Business.

He emphasised that the path to ‘Aatmanirbhar Bharat’ is a comprehensive set of policy frameworks that seeks to build indigenous technological and production capacity & capability with cooperation, participation and collaborations with reputed institutions and Original Equipment Manufacturers (OEMs) from friendly nations. He said, the idea is to manufacture in India for the Indian market as well as export to the friendly countries, i.e., ‘Make in India, Make for the World’.

“The main objective is to fulfil the requirements of Indian Armed Forces; and at the same time, create long-term linkages to the global supply chains of the foreign OEMs to meet global demands. Through these linkages, India looks forward to collaborating for a secure and resilient global supply chain for the free world to ensure uninterrupted and reliable access to defence equipment and other strategic materials for our nation and our partners, including the US. As India’s defence base grows, private sector companies from the US can explore the vast potential for ‘Creating in India’ and ‘Exporting from India’,”Rajnath Singh said.

The minister highlighted a number of steps taken by the Government to achieve the objective, including increase in the number of procurement categories to encourage greater participation of the Indian Industry and attract foreign companies to manufacture in India. “We are delighted to work with US, our valued partner, to strengthen our commercial and strategic relationship and to attract US investment for creating a high-technology defence production ecosystem in India. For India, collaboration with US companies would be an important strategic force multiplier, apart from being wealth and job creator,” he added.

He termed the easing of FDI regulations and introduction of Buy (Global–Manufacturer in India) in Defence Acquisition Procedure 2020 as an invitation for the US businesses to participate in the opportunities offered by the Indian defence industry. He asserted that US companies can now set up manufacturing facilities, individually or in partnership with Indian companies, through a Joint Venture or technology agreement etc., to capitalise on the ‘Make in India’ opportunity. He exuded confidence that the firms will find India to be an attractive investment destination for defence manufacturing.

 The Raksha Mantri described the Positive Indigenisation Lists, in which a wide spectrum of equipment/systems are included, as another major step towards creating a mature defence industrial base in the country. The list has also given impetus to domestic Research & Development by attracting fresh investment into technology and manufacturing capabilities by providing a measure of demand assurance to the manufacturers in India, he said.

Rajnath Singh shed light on the importance of defence exports, terming it as a key pillar for the long-term sustainability of the domestic defence industrial base. Domestic demand alone may not always provide economies of scale to make profitable investments and sustain them, he said. The Raksha Mantri added that $5 billion dollar export target set for 2025 reflects the intent of the Government for export-oriented manufacturing.

He described the project agreement to co-develop Air-Launched UAVs, under the auspices of the India-US Defence Technology and Trade Initiative, as a welcome development. He stated that industries from both sides can explore additional DTTI projects, such as a counter unmanned aerial systems and an Intelligence, Surveillance, Target Acquisition and Reconnaissance platform.

Rajnath Singh pointed out that Indians have played a stellar role in technological development of US, be it IT sector, bio-technology, space or cyber technology, besides contributing in the fields of business and finance. Stating that the US provides a conducive environment for talent to perform and has reaped the benefits thereof, he urged US business and technology leaders to collaborate with Indian industries to create a similar growth miracle in India. He stressed that developing new avenues to work together at the industrial, scientific and academic levels will be key to ensuring that India-US defence ties remain dynamic.

HAL to Support MRO of RD33 Mk Engine of MiG 29/KUB Aircraft

Hindustan Aeronautics Limited (HAL) signed an MoU with the Indian Navy for positioning of HAL team at Naval Aircraft Yard, Goa for supporting maintenance and repair of RD 33 Mk Engine of MiG 29K / KUB aircraft and imparting specialized training at Naval Institute of Aeronautical Technology (NIAT) Kochi, on October 20, 2022 during DefExpo 2022 at Gandhinagar.

The MoU was signed by Mr D Maiti, Chief Executive Officer, MiG Complex and Rear Admiral Deepak Bansal, Assistant Chief of Naval Staff (Air Material) in the presence of Mr C B Ananthakrishnan, CMD, HAL, Vice Admiral Sanjay Mahindru, Deputy Chief of Naval Staff, AVSM, NM, Indian Navy and other HAL senior officers.

GRSE Under Patented Design launched 

First of its Kind, 100% Indigenous Double Lane Modular Steel Bridge with Carriage Width: 7.50 M built by Garden Reach Ship Builders & Engineers Ltd. Under Patented Design was launched by Ajay Bhatt, Minister of State for Defence at GRSE Pavilion.

 

ASDO Certificate to HAL

Rajnath Singh handed over the Air System Design Organisation (ASDO) Certificate to Hindustan Aeronautics Limited today during the ongoing DefExpo 2022 at Gandhinagar. This in recognition of HAL’s quality systems and will enable faster certification of HAL manufactured helicopters.

Dr D K Sunil, Director (Engg. and R&D), HAL received the Certificate during the event.

HAL is the first DPSU to receive CEMILAC’s Design Organization Approval as per the new Design Organization Approval Scheme (DOAS) pursuant to IMTAR-21 requirements. 

Airbus first foreign OEM to receive Quality Management System approval 

The Airbus Defence and Space Quality Management System (QMS) for the C295 aircraft has received approval from the Directorate General of Aeronautical Quality Assurance (DGAQA), the Indian regulatory authority for aeronautical quality assurance. This is the first time a QMS of a foreign aircraft manufacturer has been approved by DGAQA. 

The certificate of approval was handed over by Director General of DGAQA, Sanjay Chawla to Kajetan von Mentzingen, Head of Quality, Airbus Defence and Space at a ceremony held on the sidelines of DefExpo 2022, in Gandhinagar. This is a significant first step of a comprehensive quality assurance roadmap agreed between Airbus and DGAQA for the C295 ‘Make in India’ programme. 

Speaking on the approval, Kajetan von Mentzingen said, “We have crossed a milestone for the C295 ‘Make in India’ programme. This certification demonstrates the trust and confidence that DGAQA places in Airbus quality standards. It marks the beginning of a robust and comprehensive roadmap that Airbus has put in place for the C295 ‘Make in India’ programme. It will be the foundation for successful aircraft manufacturing in India under the policy of Aatmanirbhar Bharat.”

 India formalised the acquisition of 56 Airbus C295 aircraft to replace the Indian Air Force (IAF) legacy AVRO fleet, in September 2021. Under the contractual agreement, Airbus will deliver the first 16 aircraft in ‘fly-away’ condition from its final assembly line in Seville, Spain. The remaining 40 aircraft will be manufactured and assembled by Tata Advanced Systems Limited (TASL) in India as part of an industrial partnership between the two companies. This certification is part of this programme, which involves the full development of a complete industrial ecosystem: from the production of detailed parts to assembly, test and qualification, to delivery and maintenance of the complete lifecycle of the aircraft.

HAL Bags Raksha Mantri’s Awards for Excellence in Defence and Aerospace 

Defence Minister Mr Rajnath Singh presented awards for Excellence in Defence and Aerospace to Hindustan Aeronautics Limited (HAL) in the Institutional and Individual/Team categories on the sidelines of DefExpo 2022 at Gandhinagar, today.

HAL received “Raksha Anveshan Ratn” award for development of Indigenous Automatic Flight Control System (AFCS) for the Light Combat Helicopter (LCH) in the Institutional category and for design and development of Radio Altimeter with high range and accuracy for Su 30 MKI aircraft in the Individual/Team category. HAL also received “Raksha Srijan Ratn” award for design and development of Auxiliary Power Unit (GTEG-60) for AN 32 aircraft in the Individual/Team category. HAL CMD, Mr C B Anathakrishnan and officials received the awards from the Defence Minister during the Bandhan programme at DefExpo.

“Raksha Anveshan Ratn” Award is given for excellence in innovation and “Raksha Srijan Ratn” is awarded for excellence in Indigenisation. 

Tata Advanced Systems Wins

Tata Advanced Systems’ Advanced Loitering System (ALS-50) has been awarded the prestigious Raksha Mantri’s Awards for Excellence in Defence and Aerospace Sector 2021-22, for Innovation, in Large Scale Companies category.

The Award was handed over to Sukaran Singh, Managing Director and Chief Executive Officer, Tata Advanced Systems by Rajnath Singh, Honorable Minister of Defence – Government of India at the award ceremony today at the DEFEXPO-22.

Commenting on this significant moment, Mr. Sukaran Singh, Tata Advanced Systems Ltd. said, “We are very proud to have received this prestigious award for ALS 50 which is a precision guided munition,    designed and manufactured in India from scratch. Developed and manufactured for the Indian armed forces, it is completely autonomous, requires minimum area to launch and needs minimum operator intervention.”

Tata Advanced Systems Limited (TASL) displayed the Advanced Loitering System (ALS 50) for the first time at the DEFEXPO-22.

TASL is producing such a system for IAF, under contract. And, it can vary the capability to address requirements for other forces in the country and for export.