The transformation of a plural democracy of over one billion people will not only dramatically alter India's economic prospects but will also have a far reaching impact on the global economy. India is already emerging as one of the important engines of growth for both the Asian and regional economy and this trend will strengthen further in the years to come. India has a productive demographic profile; it has a large and growing pool of skilled and highly qualified manpower. In a global economy where knowledge and technology are increasingly becoming the key drivers of growth, India is well positioned to emerge as a major economy in the coming years.
At the political and security level, there is growing recognition of India's key role as a responsible power and a factor of stability in a region faced with security challenges emanating from different sources. Indeed we believe India's continued economic growth will provide new opportunities for its neighbours to tap into and benefit from this economic dynamism. At the same time, India's open democracy exerts a stabilizing and moderating influence.
The aerospace industry in India is witnessing unprecedented growth. Our aviation industry is 60 years old and now has the technological and manufacturing capability to execute complex projects involving cutting edge technologies. Hindustan Aeronautics Limited, our premier aerospace company, has grown into an integrated aerospace organisation, which also manufactures different types of aircraft with in-house R&D. Recent projects include Dhruv, an Advanced Light Helicopter, Sitara, an Intermediate Jet Trainer, and Tejas, a Light Combat Aircraft which is under development.
The civil aviation sector in India has been growing at a phenomenal pace recording an annual growth of around 25 per cent in passenger traffic. Indian companies have placed record orders for planes with major global manufacturers to meet this growing demand. At the same time, there is a renewed thrust on modernisation of aviation infrastructure, including airports, communications, navigation and surveillance systems for air traffic management, to keep pace with this fast expanding traffic.
In space technologies we are at the frontiers, having the capability to manufacture sophisticated satellites and space launch vehicles. Our civilian space programme is a key element in expanding communications, resource management, disaster warning and in bringing better education and health facilities to our remote and rural areas. India is providing satellite data and space launch services to several international partners. We are now getting ready to launch our Moon Mission, named Chandrayan, which will also carry several international experiments, including from the EU.
While the Indian defence industry, which has been largely in the state sector, has developed broad-based capabilities, we have recently put in place policies and initiatives to encourage private sector participation. The defence industry sector in India is now open up to 100 per cent Indian private sector participation, while foreign direct investment is permissible upto 26 per cent.
(Excerpts from Defence Minister A K Antony's speech delivered on the eve of the Berlin Air Show, on May 27)
