We need to reduce dependence on defence imports: Sitharaman

The Minister expressed hope that the upcoming defence exposition to be held in Thiruvidanthai from April 11-14 will be a platform to showcase Indian manufacturers to the world. 

She said that the service sector, which contributes a bulk of the GDP and the agricultural sector, should be aided by the manufacturing sector. “In getting manufacturing to contribute to lot more to GDP one of the focal areas is defence manufacturing,” said Sitharaman. “The extent to which we import in order to meet our equipment requirements for the armed forces is comparable to our oil imports. There is a need to re-innovate and think about manufacturing to meet our own defence requirements,” she added. The minister also said that it is essential to reduce the dependence on imports especially when the government has been concentrating on “Make in India”. 

She added that the boost in manufacturing will keep in mind the strengths and skillet, and the young minds that are eager to contribute from across the globe.

For this, Sitharaman said, the defence procurement policy has also been simplified, institutionalised and streamlined. While the previous policy focused on identifying a requirement and approaching manufacturers, a process that could run up to a decade for delivery, the current policy allows manufacturers to make a suo moto approach to showcase their products, thus cutting down on time. She also referred to the proposed Tamil Nadu Defence Quadrilateral — which covers Chennai, Tiruchy, Coimbatore, Hosur and Salem — as one of two defence manufacturing corridors proposed in the current budget. The Minister said that with the necessary private and public infrastructure for defence manufacturing, the region will receive a fillip with regard to jobs and growth of MSMEs and ancillary industries. 

Taking questions from the audience, Nirmala Sitharaman sidestepped a question on the controversial Rafale deal. On the scope for research and development she assured those eager to pursue research that R&D is a key focus of the Defence Ministry and DRDO. 

She invited suggestions to make DRDO an attractive prospect for employment and stop the exodus of young minds to Silicon Valley. She outlined the need for better synergy between agencies that focus on and encourage research and development in various departments. 

To a question about programs to manufacture arms and ammunitions locally, she said, “The Indian private sector is making products in this segment that are being sought after by people abroad. Some of these products will be on display at the defence expo and I hope that manufacturing can begin on them soon. I have personally seen some of them and their quality is impeccable.”