Defence Minister Rajnath Singh invited investment from domestic industry and foreign original equipment manufacturers (OEMs) in the Indian defence sector and said to take advantage of the opportunity to integrate global supply chains, during the ‘Invest for Defence’ investor outreach event organised as part of the 12th DefExpo in Gandhinagar on Thursday.
Sharing the government’s future plans for the defence sector, Minister said that the target is to increase defence production in India from USD 12 billion to USD 22 billion by 2025 and this provides unparalleled opportunities for growth to the industry in the coming years.
He said that economic and strategic capabilities are essential for the development of science and technology, health, agriculture, trade and commerce and termed DefExpo as an excellent platform for existing and prospective investors to become a part of the phenomenal growth of the Indian defence industry.
According to the statement, Foreign Direct Investment (FDI) norms in the defence sector have been liberalised to 74 per cent through the automatic route and 100 per cent through the government route and trading in stock markets has become transparent, which has also benefited defence companies.
To increase the participation of domestic industry in the defence sector, the government has reserved 68 per cent of the defence capital acquisition for domestic procurement for the year 2022-23, which is approximately Rs 85,000 crores and 25 per cent of this has been reserved for the domestic private industry, the statement reads.