Defence can be key enabler for Make in India

Defence and aerospace sector, which has witnessed a barrage of activities from private players after the sector was opened up recently by the government, has the potential to propel the growth of local manufacturing industry and give a fillip to Make in India initiative.
 
“Defence and aerospace are going to play a significant role with regard to Make in India initiative which lays adequate emphasis on manufacturing sector. Involvement of private sector is a crucial aspect for realising full potential of Make in India. Some of the key growth enablers which have promoted indigenisation are simplification of procedures in defence production and procurement,” said A K Gupta, Secretary (Defence Production), Ministry of Defence, during a seminar at Make in India Week in Mumbai. 
   
Defence Procurement Procedure in India categorically lays down the order of preference for domestic sourcing over direct purchase from abroad. Department of Defence has also come out with guidelines for outsourcing and vendor development, which would help streamline existing procedures.
 
Lt Gen Subrata Saha, UYSM, YSM, VSM, expressed that SMEs have a bigger role to play in Defence and Aerospace sector. In order to upscale the sectoral competitiveness, he proposed to seek capacity development, modernisation and focus on big ticket products like large gun system, future combat vehicles, etc delving upon the aspect of high technological requirement, he said that solutions should be designed keeping in view the nature of requirement. 
 
T Suvarna Raju, chairman, Hindustan Aeronautics Ltd, said, “HAL is involved in a vast gamut of activities ranging from making components to integration to selling. Though tier 1 and tier 2 players are involved with HAL by providing products to front end HAL, which HAL then brands and sells, there is need to usher involvement of tier 3 players.” Raju emphasised upon the aspect of upscaling localisation, since currently there prevails high percentage of import content in aeronautics (light combat aircrafts, light combat helicopters, etc).
 
Reflecting upon the capacity building aspect in SME sector, Sunil Kumar Sharma, CMD, Bharat Electronics Ltd (BEL), said, “BEL has gradually transformed from components manufacturing company towards system integration. Adopting well formulating outsourcing policy and collaborative R&D with small niche players, has helped BEL achieve competitive advantage in terms of cost.”