India Invites Global OEMs for Defence Collaboration
In a significant move to bolster India’s defence manufacturing capabilities, Raksha Mantri Shri Rajnath Singh addressed a CEOs Roundtable during Aero India 2025 in Bengaluru. He urged global Original Equipment Manufacturers (OEMs) to seize the opportunities presented by India’s expanding defence ecosystem. The event, held on February 10, 2025, highlighted the need for innovative solutions to address the challenges posed by an increasingly volatile geopolitical landscape. Singh emphasized the importance of adapting to new technologies and integrating them into military operations to ensure national security.
The Evolving Defence Landscape
Shri Rajnath Singh pointed out that the nature of military operations is becoming increasingly complex. Modern warfare relies heavily on advanced technologies, including space-based navigation systems, communication networks, and surveillance tools. The integration of these assets into operational plans is crucial for effective military strategy. He noted that recent conflicts have demonstrated the growing reliance on drones and autonomous systems, indicating a shift towards integrated warfare involving manned, unmanned, and autonomous platforms.
In light of these developments, Singh stressed the need for India’s defence manufacturing sector to focus on creating countermeasures to emerging threats. He quoted the ancient Indian strategist Kautilya, emphasizing the moral responsibility to protect the nation in a hostile environment. To achieve this, the government is committed to equipping the Armed Forces and fostering self-reliance in defence production. This commitment is reflected in the establishment of a robust and resilient defence industrial ecosystem, designed to meet the challenges of modern warfare.
Government Initiatives for Self-Reliance
The Indian government, under Prime Minister Narendra Modi, has implemented a series of transparent and industry-friendly regulations to support the defence sector. Singh highlighted the policies aimed at promoting self-reliance in defence production. These initiatives include allowing Foreign Direct Investment (FDI) of up to 75% through the Automatic Route for new defence licenses, with the possibility of 100% FDI under government approval.
To date, 46 joint ventures and companies have received foreign investment approval in the defence sector. Additionally, more than 250 Memorandums of Understanding (MoUs) have been signed for establishing industrial units in Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu. The government has also introduced the Defence Testing Infrastructure Scheme, which provides financial assistance for setting up testing and certification facilities in the aerospace and defence sectors. These steps are part of a broader strategy to transform India’s defence industry into a vital component of the national economy, facilitating the country’s transition to a developed nation by 2047.
A Platform for Global Collaboration
The CEOs Roundtable served as a crucial platform for fostering collaboration between Indian and international defence manufacturers. The theme of the event, “Enabling Defence Cooperation through Global Engagement (EDGE),” underscored the government’s intent to partner with leading organizations worldwide. Over 100 CEOs from various countries, including the USA, France, Russia, South Korea, and Japan, participated in the event, showcasing their future plans and potential collaborations with Indian companies.
Major foreign OEMs, such as Airbus, Ultra Maritime, and Rafael Advanced Defense Systems, highlighted their intentions to establish joint ventures, develop spare parts, and set up research and development facilities in India. This collaborative spirit reflects the government’s commitment to making India a leading defence manufacturer and service provider on the global stage. The participation of key figures from the Indian defence establishment, including the Chief of Defence Staff and the Chiefs of the Army, Navy, and Air Force, further emphasized the seriousness of this initiative.
In conclusion, the Indian government’s proactive approach to enhancing its defence manufacturing capabilities through global collaboration marks a significant step towards achieving self-reliance in defence production. The ongoing efforts to create a conducive environment for foreign investment and innovation will play a crucial role in shaping the future of India’s defence industry.
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