India appears to be on the verge of a crucial transformation. There is renewed optimism and can-do attitude among industry leaders after the new government announced measures, for the country to emerge as a low-cost manufacturing hub.
The ‘Make in India' concept in the defence sector has potential to raise defence manufacturing in the country from its present 30 per cent to 70 per cent in the next few years.
Further, the increase in FDI from 26 percent to 49 percent and the focus on "Buy Indian" as the first choice for Defence Procurement has also given a major push to industry players who are buoyed by the new government's commitment to upgrade its armed forces with indigenous products.
The Indian defence and aerospace industry will offer business opportunity in the range of US$ 200 billion in the next 15 years. This provides an immense opportunity for both domestic and foreign players to form joint ventures, open new avenues for technology transfers and joint production, and forge public private partnerships.
Acquisition of defence systems is intrinsically interlinked with the development of domestic industry. India's defence industry, which has grown substantially in recent years, seems headed for even better days.
With a Make in India plan on board, the government is aiming to manufacture a bulk of equipment required locally and make the country a cost-effective defence manufacturing hub for domestic and export markets as well.
Partners in progress
Rolls-Royce, with a legacy of over 80 years in India, strongly believes that this progressive initiative will not only help Indian industries become globally competitive but will also allow MNCs to further support the country's modernisation needs.
At Rolls-Royce, we are committed to delivering the government's vision. We already have 1000 local engineers working in India through outsourced agreements and have world-class manufacturing facilities here, exporting components around the world.
Our International Aerospace Manufacturing Pvt Ltd (IAMPL), a joint venture between HAL and Rolls-Royce that produces components for the technologically advanced Trent family of civil aero wasn't required by an offset commitment. It was the result of recognition of the value that both parties could add to each other. Today, the IAMPL production facility represents another commitment to the long-standing partnership with HAL and the future of Indian aerospace industry.
Going forward, this experience can be considered for extending in making India a hub for defence engineering, manufacturing and export to help create more jobs and support India to achieve strategic self-reliance.
(Continued on the next page)
