New Delhi: The cumulative value of India’s defence market for the next five years would be approximately Rs1,80,000 crore, making it an opportune moment for defence PSUs and private industries including SMEs to develop world class defence technologies.
Addressing a CII seminar on ‘Defence offset policy: Opportunities for Indian IT and electronics industry’ minister of state for defence, M M Pallam Raju , said the government was considering a proposal to provide banking credits to meet business obligations generated through defence offsets.
He reiterated the need for stronger public-private partnership to meet future security challenges.
This will also provide opportunities to the IT and electronic industries and help India meet global expectations. He emphasized on a coordiated approach between the Ministry of Defence, Armed Forces and industry to strengthen the defence base of the country.
P K Rastogi, additional secretary, department of defence production, ministry of defence, said it was a simple policy that could be easily understood by foreign vendors and Indian industry and was easy for the ministry to monitor and encourage sound relationships between foreign and domestic industry.
Through seminars and conferences an effort was being made to sensitize Indian industry on the Offset policy and emerging opportunities thereof. Once the policy comes into being, millions worth of contracts would be signed and these included MiG upgradation and replacement of Cheetah/Chetak helicopters. Making an important observation, Mr Rastogi said India was way behind in hardware and manufacturing of electronic systems and components.
Climate in India was conducive to cost-effective production, maintenance and servicing of capital equipment. Defence Offset opened new growth avenues, business opportunities and increase in defence exports. Defence establishments must be prepared to absorb the volumes of business generated by the Offset.
Kiran Chadha, joint secretarty, exports and chairperson, Defence Offset Facilitation Agency (DOFA) said Defence Offset facilitated interface between foreign vendors and Indian industry. IT sector could explore opportunities offered by the Offset while defence sector geared up and tapped IT and electronic sectors.