The days ahead
India is on the cusp of a major spending drive to modernise its armed forces. With the PM pushing for indigenisation in this sector, India's defence outlay is pegged at US$248 billion over the next 10 years.

This means, the country has tremendous potential to bring about an all-round development with emphasis on manufacturing, job creation and skill development. With a huge export potential in engineering services and component sourcing, the country is in a position to build a vibrant domestic defence industry ecosystem.

Boost to SMEs
It is encouraging to note that small and medium enterprises (MSMEs) are becoming important players in the aerospace activity. Many are undertaking research and development activities, and are involved in production of sub-systems.

The government must nurture them by giving them opportunities and extend capital on easy terms so that they can tone up engineering capabilities and marketing infrastructure.

Many foreign companies will look for co-development and co-production arrangements, and scout for joint ventures. This is where opportunities lie for Indian MSMEs. Foreign investments will also bring high-technology products and give a fillip to enterprises involved in defence equipment supplies.

Strategic security derives much from a nation's footprint on the global economic stage. India needs to increase its presence in top globally-traded goods and services. Overseas investors have a significant role to play in plugging India into global supply chains.

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