Speaking at the annual summit, the minister shared the government’s plans for the defence sector and said that the plan is for the sector to grow to $ 26 billion by 2025, with the private sector being a key player to achieve the goal. Singh also said that India’s ties with China are on the upswing and that there is no threat perception on the border.

The first four Rafale fighter jets are arriving in India by the last week of May, following which an aircraft will arrive every 45 days, Defence Minister Rajnath Singh disclosed at the Economic Times Global Business Summit, saying that the 36 on order are enough to take care of adversaries as of now.

Speaking at the annual summit, the minister shared the government’s plans for the defence sector and said that the plan is for the sector to grow to $ 26 billion by 2025, with the private sector being a key player to achieve the goal. The minister also said that India’s relations with China are on the upswing and that there is no threat perception on the border.

“The Defence sector has been identified as one of the key sectors that will help us in achieving the stated objectives. In our envisaged Defence Production Policy, we have clearly spelt out our goal to achieve a turnover of US$ 26 billion in aerospace and defence goods and services by 2025, involving an additional investment of nearly US$ 10 billion and creating employment for nearly 2-3 million people,” the minister said.

Taking a realistic view on the sector, the minister said that a lot more needs to be done to drive defence manufacturing to its true potential and that there is certain sense of underperformance at the moment where the private sector needs to step in.

“One of the main reasons for this was to retain the field of defence production within the confines of governmental control and ownership. Though, it was the necessity of the times and it did help provide a much-needed foundation to an industry that was not commercially competitive to begin with. However, the necessity of becoming internationally competitive, globally innovative and structurally efficient, demands that the private sector plays its long-awaited role in the defence industrial production,” he said.

Elaborating on steps taken to promote industry, the minister said that the government is going all out to meet demands. “We have opened opportunities through DRDO with a zero fee for Transfer of Technology (TOT), free access to over 450 patents, access to test facilities and an upfront funding of up to 10 crores. More than 900 licensing agreements for ToT have been signed with industries. This is a major step towards self-reliance in defence manufacturing sector,” the minister said.

Terming Micro, Small and Medium Enterprises as ‘silent performers’ who carry the ambition of achieving five trillion economy on their shoulders, the minister said that their role is being expanded. “More than 8000 MSMEs are currently engaged in Defence Production. Efforts are being made for doubling the active MSME base in Defence and Aerospace from 8000 to 16,000,” the minister said.

Singh said that export of defence products is a priority area and the private sector is being encouraged to reach out to global clients. “We would also be willing to extend Lines of Credit and grants for Friendly Foreign Countries over the next five years. The government aims to achieve exports of defence goods & services to the tune of USD 5 Bn in next 5 years,” he said.

The minster announced that the government’s aim is to double the size of Aeronautics Industry from ₹ 30,000 Cr to 60,000 Cr by 2024. “A number of major platforms are envisaged in defence Aerospace sector including India’s 90-seater civil aircraft, developing civil helicopter industry of USD 5 Bn in PPP model, and New Aero Engine Complex in Defence Corridor with industry participation,” he said.

The defence minister assured the industry that the government is open to new ideas and is “committed to fully harness the energies, entrepreneurship spirit and enterprise of private sector in the area of defence.”