Defexpo 2012: Self-Reliance Is Key, Says Indian Defense Minister

Joint Ventures and promotion of participation of Small and Medium Enterprises (SMEs) will be the foremost areas under discussion during this year’s Defexpo which began today in New Delhi. The Government of India to hoping to encourage self-reliance while equipping the Armed Forces with the latest equipment and weaponry. Speaking during the inaugural address, Defence Minister A K Antony said that expenditure on defence is bound to increase as the armed forces need to have access to the latest technologies and equipment to counter any threat. "With the projected growth of the Indian economy expected at a trajectory of 8-10 per cent for the next two decades, expenditure on defence in absolute terms is bound to increase," Antony said inaugurating the seventh edition of International Land and Naval Defence Systems Exhibition-Defexpo-12, in New Delhi. Observing the need to protect its assets, he said, “At the politico-security level, India has always been recognised as a responsible power and a stabilising factor in this region, in the face of various security challenges originating from different sources around us. However, we have to be ready to meet any challenge to our territorial integrity and sovereignty”. Emphasizing the need to be self-reliant, Antony said, “Our quest for self-reliance in defence underlines the growing importance of private sector participation on the one hand, and revitalising the public sector on the other. Our emphasis is on public-private sector partnership in the defence industry. Enabling Policy framework has been put in place to develop indigenous capabilities through harnessing the potential and utilising resources available, both in the public and the private sector.” "Enabling policy framework has been put in place to develop indigenous capabilities through harnessing the potential and utilising resources available both in public and private sector," he added. Minister of State for Defence Dr. MM Pallam Raju also addressed the attendees and kept in line with the Minister’s Antony’s note, saying, “Self-reliance in Defence is vital importance for both strategic and economic reasons. The Government is committed to promoting indigenization in Defence which is now one of the thrust areas. We want our Armed Forces to be equipped with the latest equipment, given the rapid pace at which technology development is taking place in the Defence Sector.” Raju spoke on the Government’s introduction of the latest acquisition category known as the Buy and Make (Indian) calling it a “major shift” that will enable Indian Industries to enter into Joint Ventures with Foreign OEMs. “The route has opened up ways for Technology Transfer to Indian Industry based on the requirements of the Armed Forces. The lack of adequate information regarding the Defence requirements has been one of the major impediments in the growth of the Defense Industry in India,” Raju said. “The Government is in the process of finalizing the Long Term Integrated Perspective Plan (LTIPP) of the Armed Forces. Consequent to its finalization a public version of the document outlining the technology perspective and capability roadmap of the Armed Forces covering a period of 15 years will be published and placed on the MoD website.” This, he said, will enable the Domestic Industry to plan investment in the Defence Sector and take up Research and Development, Technology Upgradation and forge tie-ups and arrangements of collaboration with their associated Foreign Industry Partners in order to meet the future requirements of the Armed Forces. The current system of Defence Procurement Procedures makes it mandatory to issue Request for Information (RFI) in all acquisition cases. With the new upgrade, not only will information be required for formulation of General Staff Qualitative Requirements, but also act as advance intimation to the Industry. Looking at the formation of Joint Ventures in the Critical Technology Areas, Raju said that the ongoing Modernization of the Armed Forces presents enormous opportunities for doing business in Defence Sector in India.