In a major boost for military equipment production in the country, Defence Minister Rajnath Singh on Tuesday (8 June) extended the invitation to leading Swedish defence majors to set up manufacturing bases in India, reports Economic Times.
He was addressing a conference on India-Sweden defence industry cooperation where he also showcased India as an attractive destination for investment to produce military equipment and platforms.
He underscored that a series of reforms have been undertaken by the government to help the defence industries serve Indian requirements as well as global demands.
He referred to the increase in foreign direct investment (FDI) limit up to 74 per cent through automatic route and up to 100 per cent through government route in the defence manufacturing sector.
"Over the past few years, the Indian defence industry has been galvanised through progressive policy and procedural reforms which have catapulted the industry to serve not only Indian requirements but also meet global demand," Singh said at the virtual conference.
He also stated that the foreign OEMs (Original Equipment Manufacturers) can set up manufacturing facilities individually or in partnership with Indian companies through joint ventures or technology agreement to capitalise on the ''Make in India'' initiative.
"Swedish firms such as SAAB already have a major presence in India and I am confident that other Swedish firms will find India as a major investment destination for defence manufacturing," he said.
"There is a lot of scope for Sweden and Indian defence Industries for co-production and co-development. Indian industry can also supply components to Swedish industries," he added.
"The Mission - ''Atmanirbhar Bharat'' or ''Self-Reliant India'' of Prime Minister of India Narendra Modi is about producing cost-effective quality products and in its core has the motto - ''Make in India'' and ''Make for the World''," he said as per the report.
He also highlighted India’s vast defence industrial base which consists of 41 ordnance factories and nine defence public sector undertakings and expanding private industries,. He also mentioned the robust shipbuilding industry in India with world-class shipbuilding industries.
"I take this opportunity to invite Swedish firms to invest in the dedicated defence corridors of Uttar Pradesh and Tamil Nadu where they can benefit greatly from the unique incentives being offered by the state governments and the availability of a highly-skilled workforce in India," he said.