Get All Access for $5/mo

How Defence Minister Rajnath Singh would boost Defence Sector with Global Investors Rajnath Singh on Monday invited global investors to invest in aerospace and defence goods and services in order to raise employment and reduce import dependence

By Vinayak Sharma

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

PIB

While addressing the gathering at (ADMM-plus) ASEAN Defence ministers' meet n Bangkok, Defence Minister Rajnath Singh invited global defence majors and investors to India's defence sector. He stated that India has planned to set a target of being the nation to export military equipments worth $5 Billion by 2025.

Employment

Eyeing the employment count, Singh stated that targeting the aerospace, defence goods and services areas, India is planning to invest around $10 Billion in these sectors which would bring a jump in the employment percentage of the country. According to Business Today, Singh mentioned that around 2 to 3 Million people would get jobs in these sectors as the demand for goods and services will rise along with the major investment in specific work spheres.

Also Read: Why PM Modi is reaching Out to Oil-Rich Nations to Invest in the Hydrocarbon Sector

ToT (Transfer of Technology)

Introducing the new policy at the Bangkok meet, Defence Minister mentioned that new policy of ToT (Transfer of Technology) was being formulated to ease the process of transferring the technology developed by DRDO (Defence Research and Development Organisation) to the defence industry. Recently, DRDO has signed 30 agreements related to ToT with 16 Indian companies which also include 3 start-ups. Indian Armed Forces are procuring ready-to-eat meals, survival rations and emergency flying ration products from companies which have acquired ToT from DRDO. And now, Defence Minister has made global players familiar with ToT and invited them to engage in the process.

Reduce Import dependence

At the meet, Singh said that Defence Sector has been prioritized under "Make in India' initiative and it is aimed at reducing the import dependence and driving the nation to become the net exporter of defence equipments and services. According to export.gov, at present India imports around 60 per cent of the defence needs. In comparison to the export figures, India has imported defence requirement worth around $10, 819 Million in 2019 from $6,770 Million in 2016. Export figures reached to $7,461 Million in 2019 from $5,395 Million in 2016. To reduce the import count, Singh urged the global and domestic manufacturers to be a part of "Make in India' initiative and fulfil the defence needs. "Make in India' is one of the biggest initiatives of Indian government to attract investors to invest in India for defence requirements.

Also Read: How PM Modi Urged Business Leaders at BRICS to Invest in India

New Defence Category (Buy Indian-IDDM)

Defence Minister Rajnath Singh also described the new defence policy upgrades that have been helpful in the sector'ss' development. Singh mentioned the defence procurement procedure was transformed in 2016 to encourage the domestic defence industry. A new category Buy Indian - IDDM (Indigenously Designed, Developed and Manufactured) was introduced to forge ahead with the design and development of defence equipment. He introduced it at the Bangkok meet for the global interest and also to increase domestic involvement in the category.

About ASEAN (ADMM-Plus)

Rajnath Singh is in the Bangkok to attend ASEAN defence ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus) grouping, a platform including ASEAN and its eight dialogue partners including India. At the meet Singh stated the government's decision to promote self-reliance in defence sector with five "I'-Identification, Incubation, Innovation, Integration and Indigenisation. Defence Minister invited global and domestic speculators to be a part of the upcoming DefExpo to be held in Lucknow in February 2020.

Vinayak Sharma

Entrepreneur Staff

Correspondent, Entrepreneur India

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

News and Trends

Talent, Digital Infra, Policy, and Startups Driving India's GCC Ecosystem

By leveraging its demographic dividend and evolving policies, India is uniquely positioned to become the preferred choice for global enterprises seeking scalability, resilience, and a future-ready operational base.

News and Trends

Indian Venture Ecosystem Poised for Global Ascent: Recovery, IPO Resurgence, and 'Building for Bharat' to Define 2025

India's GDP is poised to scale from USD 4 trillion to USD 8 trillion over the next decade and will offer a playground that is remarkable for both founders and venture capital (VC) firms, said Pranav Pai, Founding Partner and CIO at 3one4 Capital.

News and Trends

Key Cybersecurity Trends to Track as Threats Evolve

India has lost INR 11,333 crore to cyber fraud in just the first nine months of 2024. Nevertheless, with increasing cyber threats and public awareness, companies are taking proactive steps to safeguard their networks and devices

News and Trends

India's Data Center Capacity to Reach 2,070 MW by End of 2025: CBRE

Cumulative investment commitments in the data center sector in India to cross USD 100 billion by 2027. Mumbai, Chennai, and Delhi-NCR to lead data center supply addition

Leadership

How to Master the Art of Delegation — Lessons From Andrew Carnegie's Legacy

Here's what Andrew Carnegie can teach today's entrepreneurs about leadership, teamwork and effective delegation.