Raksha Mantri Shri Rajnath Singh called upon the Indian defense industry to identify and manufacture state-of-the-art and cost-effective products/technology to realize Prime Minister Shri Narendra Modi’s vision of a ‘New India’ that will not only take care of its own. needs, but also meets international requirements.
Addressed the 5th Annual Meeting of the Society of Indian Defense Manufacturers (SIDM) in New Delhi on 27 September 2022. Shri Rajnath Singh asserted that the Government fully understands the importance of a fool-proof security apparatus and is constantly working to strengthen all dimensions of national security to take the country to greater heights. “Only a secure and strong nation can reach the heights of success. No matter how wealthy or informed a nation is, its prosperity is at risk if national security is not ensured. We are focused on national security and economic prosperity to make India one of the strongest countries in the world,” he said.
Private sector as a game changer
Raksha Mantri said former Prime Minister Atal Bihari Vajpayee saw the private sector as a game changer and the current government led by Prime Minister Shri Narendra Modi is continuing this vision with great fervour. He said the number of reforms undertaken by the Ministry of Defense in the last few years to increase private sector participation has created an enabling environment for defense companies to ensure holistic development of the country as well as their own.
Shri Rajnath Singh enumerated the steps taken to support the private sector, including earmarking 68 per cent of the capital procurement budget for domestic industry in 2022-23, of which 25 per cent was earmarked for the private sector. In addition, 25 percent of the defense research and development budget has been earmarked for private industry and start-ups, paving the way for innovation in new defense technologies in India.
Other measures include issuing positive lists of indigenous people; the unveiling of the 2020 Defense Acquisition Procedure; opening up opportunities to build a Mega Defense program including fighter jets, helicopters, tanks and submarines through a strategic partnership model and the Innovations for Defense Excellence (iDEX) initiative, which has created an ecosystem for innovation and technology development in the defense and aerospace sectors.
Increase in the demand for military equipment across the globe
Raksha Mantri pointed out that the ever-evolving global scenario has led to an increase in the demand for military equipment across the globe, with countries focusing on strengthening their security systems. He urged the industry to take advantage of this current golden period of the Indian defense sector and urged them to further strengthen their participation through increased investment in the two defense corridors set up in Uttar Pradesh and Tamil Nadu, to achieve the vision of ‘Aatmanirbhar Bharat’.
“According to a recent report by the Stockholm International Peace Research Institute (SIPRI), in 2021 world military spending will exceed $2 trillion for the first time. Compared to 2020, it increased by 0.7 percent and compared to 2012 by 12 percent. Our armed forces will also spend a significant amount on capital purchases in the coming years. This shows that the security needs of the world will increase.
India is able to meet these needs, both in terms of quality and cost effectiveness. The public sector, private sector, academia and research and development organizations, with SIDM as a focal point, must continue to work together to achieve this goal,” said Shri Rajnath Singh. Raksha Mantri appreciated the fact that the efforts made by the government have started yielding positive results as there has been an increase in the number of contracts awarded to the domestic industry.
He added that as a result of these efforts, more than 10,000 SMEs have engaged in the defense sector, with growth witnessed in R&D, start-ups, innovation and employment. “Seven eight years ago, our defense exports were not even Rs 1,000 crore. They have now crossed Rs 13,000 crore. We have set a target of Rs 1.75 crore defense production by 2025, which includes exports of Rs 35,000 crore,” said Shri Rajnath Singh. On the recent surge in defense stocks, Raksha Mantri said the rising market valuation of companies is a reflection of the confidence of major investors, the services and the nation in entities that contribute to national security.
Terming SIDM as a bridge between the government and industry, Shri Rajnath Singh urged the companies to approach the association with any queries and complaints and ensure all support of the Ministry of Defence. However, he also emphasized that while there is a responsibility of the industry to its balance sheet, it also has a responsibility to the nation. He called on them to fully attend to the interests of all stakeholders, including timely payments to SMEs and vendors in their supply chain, promoting the use of clean technologies and fulfilling corporate social responsibility.
Raksha Mantri, while lauding the growth of SIDM, said that in just five years since its inception, about 500 members have joined the association, which is an indicator of the progress of the Indian defense industry. He described SIDM’s expansion outside Delhi as a reflection of confidence in the industry as well as the association’s determination to protect the interests of local companies with the main objective of enhancing national security.
The 5th annual session of SIDM was organized under the theme ‘India@75: Shaping for India@100’ to position India as one of the leading countries in defense manufacturing. The session witnessed the participation of the top leadership of the Ministry of Defence, Indian Armed Forces, Industry and Foreign Defense Attachés based in India. Chief of Air Staff Chief Marshal VR Chaudhari, Deputy Chief of Naval Staff Vice Admiral SN Ghormade, Deputy Chief of Army Staff Lt Gen BS Raju, SIDM President Shri SP Shukla.
On this occasion, Shri Rajnath Singh congratulated the winners of the 2nd edition of SIDM Champions Award. Bharat Electronics Limited, Bharat Forge Ltd and Larsen & Toubro Ltd were among the winners who were awarded in various categories such as technological innovation to address capability gaps, import substitution and infrastructure for design/development and testing.
Read Now :DRDO conducted two successful test flights of the Very Short Range Air Defense Missile
