Can India become a global hub for defence manufacturing?

India to become a global hub for defense manufacture
India to become a global hub for defense manufacture

Indian Market
by 5paisa Research Team Last Updated: 2022-10-31T17:09:42+05:30

That is the million dollar question. Can India leverage its manufacturing strength and the weakness of China in the supply chain to position itself as a preferred source for defence outsourcing. The prime minister and the defence minister appear to be quite confident about these prospects, but that is something only time will tell. India has already started the exercise to manufacture defence products local and ensuring a much larger domestic component in the defence orders given out by the defence forces like the Indian Army , the Indian Air Force and the Indian Navy. 

Prime Minister mentioned this possibility, or rather a dream, when he was inaugurating the Defence Expo in the state of Gujarat. Interestingly, Mr Modi has been in Gujarat for the inauguration of the aircraft manufacturing factory in Gujarat. Tatas and Airbus have collaborated to manufacture C-295 aircraft to the Indian Air Force. This will be a committed 56 aircraft for the IAF and the balance output will be either exported or sold to private aviation companies. It would be a big boost to saving foreign exchange in this case. After all, the Tata Airbus venture is the first case of private manufacture of aircraft in India.


Also Read: India targets 4-fold growth in defence exports by FY25

The C-295 aircraft to be manufactured at the Tata Airbus venture will have state of art contemporary systems and has been designed with pilot-friendly features. The idea is showcase that India has the potential to not only make defence equipment in India, but also to export. Of course, the real dream for Modi is that India manufactures on behalf of defence manufacturing companies like Lockheed Martin and British Aerospace. This is not a very far fetched idea and is perfectly achievable, although security and technology issues will continue to be a major sticky point for this kind of project.

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