22 April , 2022 Fdiindia
Rajnath Singh Asks US Firms to Help India Achieve Its Defense Export Targets
Indian Minister of Defense Rajnath Singh said that orders from American companies have helped bolster the country's exports, which in turn has created employment opportunities in India.
As per his statement, Indian firms have exported “around $2.5 billion to the US in the last five years, which is 35 per cent of total defense exports achieved during the period”.
The Ministry of Defense’s (MoD’s) Defense Production Policy of 2018 (DProP 2018) set its goal as this: “To achieve a turnover of Rs. 1,70,000 crore (US $26 billion approximately) in aerospace and defense goods and services by 2025… creating employment for nearly two-to-three million people”. However, India is still short of its manufacturing and export targets as specified.
The DProP 2018 export target of approximately US $5 billion of defense goods and services by 2025 is also a little far from achievement.
Mr. Rajnath Singh urged American businesses to take advantage of Prime Minister Modi’s open investment policies in India, such as “Atmanirbhar Bharat” (self-reliant India) to carry out joint R&D, co-produce for each other's markets, co-develop products together and make investments in promoting new areas of business in India, specifically MRO facilities that involve product maintenance, repair and overhaul.
“From an increase in “foreign direct investment (FDI) limit to improving ease of doing business and from encouraging innovation through the iDEX platform to an enhanced positive list to give a fillip to manufacture in India, the government is sharply focused on enhancing the share of defense manufacturing, export by India-based companies and joint ventures,” Singh said.
“India and US confirmed their intent to advance cooperation in critical and emerging technologies such as advanced communication technology, artificial intelligence, quantum science, STEM, semi-conductors and biotechnology,” he added while speaking about the discussion topics during the 2+2 ministerial meeting on April 11.
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