2 min read.Updated: 10 Aug 2020, 03:03 PM IST Edited By J. Jagannath
The government aims to attract foreign investments in pre-identified areas, promote joint ventures and support local businesses to expand India's share of global markets, says MSME Minister
New Delhi: Indian government is planning to promote the manufacturing of selected products, especially in areas where China enjoys a big share in the global market, as part of efforts to reduce imports and push exports, said minister Nitin Gadkari on Monday.
"The government aims to attract foreign investments in pre-identified areas, promote joint ventures and support local businesses to expand India's share of global markets," Gadkari said at a virtual conference, Reuters reported.
"There is an opportunity for India in sectors where China enjoys a big share in the global market," he said.
In the last few months, the government has announced production-linked incentives for manufacturing of electronics, medical devices and pharmaceutical products while putting restrictions on imports of Chinese products.
Gadkari's statement comes close on the heels of Ministry of Defence preparing a list of 101 items for which there would be an embargo on theit import.
"This is a big step towards self-reliance in defence. It also offers a great opportunity to the Indian defence industry to rise to the occasion to manufacture the items in the negative list by using their own design and development capabilities or adopting the technologies designed and developed by Defence Research and Development Organisation (DRDO) to meet the requirements of the Armed Forces in the coming years," said Ministry of Defence on Sunday.
The list is prepared by MoD after several rounds of consultations with all stakeholders, including Army, Air Force, Navy, DRDO, Defence Public Sector Undertakings (DPSUs), Ordnance Factory Board (OFB) and private industry to assess current and future capabilities of the Indian industry for manufacturing various ammunition/weapons/platforms/equipment within India.
Almost 260 schemes of such items were contracted by the Tri-Services at an approximate cost of ₹3.5 lakh crore between April 2015 and August 2020. With latest embargo on import of 101 items, it is estimated that contracts worth almost ₹four lakh crore will be placed upon the domestic industry within the next five to seven years. Of these, items worth almost ₹1,30,000 crore each are anticipated for the Army and the Air Force while items worth almost ₹1,40,000 crore are anticipated by the Navy over the same period.
The list of 101 embargoed items comprises of not just simple parts but also some high technology weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircrafts, light combat helicopters (LCHs), radars and many other items to fulfil the needs of our Defence Services. The list also includes, wheeled armoured fighting vehicles (AFVs) with indicative import embargo date of December 2021, of which the Army is expected to contract almost 200 at an approximate cost of over ₹5,000 crore.
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