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Do you believe that Indian industry is currently ready to take on the challenge of high-tech defence manufacture?
In today's globalised world, the strength of a country's economy reflects its military power and preparedness. The intrinsic capabilities in Indian manufacturing industry now need to be sufficiently reflected in our defence manufacturing base. Clearly, the emphasis has to be on indigenisation to make the country largely self-reliant in critical items of defence equipment. The large expenditures that we presently incur on imports need to be instead channeled to expand our domestic manufacturing capabilities. I strongly believe that Indian industry has the necessary capabilities and capacities to manufacture high-tech equipment and components. We have demonstrated this in various other sectors in which Indian companies have achieved global leadership. I see no reason why we cannot emulate our successes in the defence manufacturing sector and thus contribute towards large-scale indigenisation in this critical sector of the national economy.
What do you think about the recently released DPP 2013?
It is a forward-looking policy document and there are many positives, like preferred procurement through indigenous sources, maintenance transfer of technology to private industry, properly defined indigenous content for various categories of procurements and much more. There is however a feeling that the issue of taxes and duties has not been addressed. This will need to be taken up at the earliest to encourage participation by Indian industry. The policy document is a reflection of government's intent. However, this needs to be followed by implementation of the various measures that have been announced in letter and spirit. Industry is optimistic that this would happen.
What do you think is the biggest impediment in the implementation of this policy?
Notwithstanding our genuine readiness to work with the MoD, a veil of secrecy still appears to cloud various defence programmes. This has resulted in a certain amount of trust deficit between government and industry, which needs to be removed. The key lies in optimal utilisation of resources available in the country, notwithstanding whether these are available in the public or private sectors. We need to talk to each other transparently, frequently and continuously, and in the process build mutual trust, confidence and respect for our respective capabilities. The dividing lines between DPSUs, OFs and domestic manufacturing industry need to be systematically dismantled. This is how most leading defence industries have been built up in other nations. This is a process that takes time, but must begin with industry and the defence establishment working together towards a common goal through well-defined and structured programmes.
Is the private sector geared for innovation and the design and development that will be required?
The key to bring progress in defence and aerospace sector is innovation and development of new technologies. Technology denial will always remain an instrument of foreign policy. India has been and will continue to remain on the receiving end of technology denials. It is therefore important that capabilities are developed within the country to develop technologies. Emphasis must therefore be placed on research and development and their applications. De-bottlenecking innovation and R&D would need government institutions and the private sector to work together in the national interest. It is therefore necessary to evolve a system through which research and development is incentivised, equal opportunities are provided for its commercial exploitation and costs are amortised over long-term supply contracts. Indian industry is highly entrepreneurial and has demonstrated its capability in a variety of sectors. With many leading Indian companies now being globally present, they have the means to create or acquire the required technology.
What do you think about defence exports and the capability of Indian industry in this regard?
In the past 10 years the traditional stereotype of Indian manufacturing companies as 'unreliable' and 'poor quality' has changed and given way to recognition of our global vision, quality and ability. Many of our companies led by visionary entrepreneurs and driven by a passion to be truly world class have emerged as globally significant players in their respective fields. Indian industry is now widely recognised as a potential leader in the global manufacturing industry and a key player in the new knowledge age. I believe that the opportunity is ripe for government and industry to leverage the inherent strengths within Indian manufacturing, including in the public and private sectors, to build strong global competitive advantage in the area of defence manufacture. I strongly believe this is an achievable goal provided we pool our resources and work together to achieve a common objective.
Since you head the Kalyani Group, let me ask: Is your group prepared to put in the resources required to take on this challenge?
As a company which is engaged in the automotive and key high-tech engineering industries, one of our key strategies has been to create capabilities and capacities ahead of demand. Such a proactive approach has worked in our favour and we have created global leadership in our business. We are committed to following the same strategy in our other businesses, including defence, and have already taken effective steps in this direction. We have requested the government to take note of the large front-end investments that we have made and to give us equal opportunities to compete in its various procurement programmes. We can start production of various key components very quickly and support the indigenisation efforts that are planned. Our vision is to contribute in building various "Made in India" defence systems, equipment, components and products. We are confident that our government will provide us opportunities to do so and through these we will be able to contribute significantly in reducing the country's dependence on imports and in building a strong domestic defence manufacturing base.
