http://www.indiainfoline.com/news/news.asp?dat=75148
India has opened out its Defence sector to 100% private participation and this will encourage co-production and co-marketing of its equipments in keeping with the need of the times.
This was stated by Defence Minister Pranab Mukherjee, at the inauguration of the Defexpo 06 organised by the Confederation of Indian Industry (CII) and the Ministry of Defence on Tuesday.
Speaking at the inaugural function of the fourth Defexpo at the Pragati Maidan, Mr.Mukherjee said that with 420 participants from 31 countries showcasing their products at the Defexpo 2006 was the largest ever participation in the exhibition which was started in 1999. The Defence Minister said that India had 39 Ordnance factories and 50 laboratories under the DRDO which had been producing equipments and complex arms and ammunition for the Indian army. But in the wake of the liberalization of the economic policies India was open to collaborations with other countries, which could be mutually beneficial, he said.
The Expo 06 was not only an occasion for discussing the latest trends and technology but also showcasing the state-of-the-art products by the various participants for the markets in Asia, the minister said.
K.P.Singh, Secretary Defence Production, in his address said that the Defexpo was aimed at providing a trouble free environment for the exhibitors to showcase their latest products.
He said that the policy decisions taken by the Minister had led to greater freedom to the public sector and opened it to private participation by allowing 26% FDI in Defence production.
He said that the decision on offsets taken by the Government was a major step in that direction whereby 33 % of the goods had to serviced in India. ”This requires a lot of hard work on both sides, the foreign supplier and the Indian authorities,” he stated.
Earlier, welcoming the guests Arun Bharat Ram, Past President CII, said that the environment in India was very conducive for private and public participation in the DRDO and also for international collaboration.
He lauded the institutionalization of off sets by the Defence Ministry as a landmark decision, which allowed defence production globally. Atul Kirloskar, Chairman, CII National Committee on Defence, in his vote of thanks stated that the changed environment in the Defence sector was evident from the factor that 189 private sector companies were taking part in Expo 06.
