India's defence exports almost doubled during the financial year 2015-2016 and manufactured equipment worth Rs 2,059 crore were exported to 28 countries
Defence is one of the most important sectors in India strategically. We
have a military strength of over a million and import more than 70% of our
military armaments. The government of India has allowed 100% FDI out of which
49% is through automatic route; which allows for FDI without government approval.
There were a lot of questions regarding the
national security for 100% FDI but the government has backed itself saying it
does not compromise national security but brings greater investment and more
employment.
India's focus on defence manufacturing is paying
off high dividends as it unveiled HAL manufactured Tejas light combat Aircraft
and Thermobaric ammunition for Arjun tanks. While India signed a 58,000 crore
deals with Russia for 36 Rafale fighters, the manufacturer was ready to
manufacture the planes in India if ordered a bigger consignment. Brahmos
missile, a joint venture between Russia's NPO and India's DRDO, has been in
talks of exporting it to the Latin America and South East Asia.
India's defence exports almost doubled during the
financial year 2015-2016 and manufactured equipments worth Rs 2,059 crore were
exported to 28 countries. Foreign companies manufacturing goods in India have
to pass the technology to Indian companies for their native production. Foreign
companies need not mention their tie up with Indian counterparts at the time of
bidding and 51% Indian equity ownership has been removed.
Indian private companies like Reliance Defence
Anil Ambani Group(RDEC), Reliance Industries, Larsen& Toubro and Mahindra
have stepped up to manufacture defence armaments.
Pushing forward on its Rs 6,000-crore deal for
military helicopters, Russia has informed the Ministry of Defence about an
association with Reliance Defense to manufacture Kamov 226T choppers
indigenously.
While an option to partner with defence public
sector unit Hindustan Aeronautics Limited (HAL) has also been kept open for the
final approval from the Indian government, sources said the Russian side has
shown interest to work on a joint venture with under another element that could
be named 'Reliance Helicopters'.
Source :- Business World
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