New Delhi: India‘s Minister of Defence Rajnath Singh today invited American companies to invest in the nation and contribute in making for the world from the Indian soil, as envisioned by Prime Minister Narendra Modi.
Rajnath Singh said, at the 18th India-US Economic Summit organised by the Indo-American Chamber of Commerce through video conferencing on the theme ‘Bouncing Back – Resilient Recovery Path Post COVID-19‘, that India is now home to stable and secure government, which focuses on economic growth through series of reforms.
Terming defence sector as an integral part of not just the security but overall growth of the country, the minister said the initiatives taken by the government have transformed India into a strong and reliable investment destination. The robust domestic demand and availability of talented young work force and innovation make India a major investment destination, he said.
He also called upon the industry leaders to focus on transfer of technology through joint ventures to realise the country’s true potential in the defence sector.
“The Foreign Original Equipment Manufacturers (FOEMs) can set up manufacturing facilities individually or partner with Indian companies through a Joint Venture or technology agreement to capitalise on the ‘Make in India‘ initiative,” he added.
Rajnath Singh urged the FOEMS to begin the process of Research and Development with the young minds of the country, which will increase the linkages among the industries and create an ecosystem through equal contribution from academia and research.
“There is a lot of scope for the American and Indian defence industries for co-production and co-development. Indian industry can supply components to American industries.”
Expressing the confidence that American firms will find India as a major investment destination for defence manufacturing, he assured the industry that the government is open for new ideas to create a business-friendly environment in India and is committed to push all types of entrepreneurship and manufacturing in the defence sector.
Rajnath Singh said the summit is taking place at a time when India is celebrating 75th year of Independence, terming it a platinum opportunity for foreign industries, especially United States‘ companies, to contribute in building ‘Atmanirbhar Bharat’.
“I am sure that the economic and strategic partnership between India and the US will act as a spring board and the forum will act as a bridge to achieve this,” he added.
Shedding light on the growing ties between India and the US, Rajnath Singh said the Comprehensive Global Strategic Partnership, 2+2 Dialogue, Quad Security Dialogue and agreements like Logistics Exchange Memorandum of Agreement (LEMOA) and Communications Compatibility and Security Agreement (COMCASA) have taken the bilateral relations to greater heights.
He, however, emphasised that the relations are yet to receive its full potential, saying that several progressive policies have been put in place in the last two years that have given the defence sector an unexpected growth trajectory.
The measures include setting up of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu; increasing the Foreign Direct Investment (FDI) limit to 74 per cent through automatic route and 100 per cent through government route under certain circumstances; inclusion of ‘Buy and Make‘ category in Defence Acquisition Procedure-2020, which provides a vendor with an economical workforce and India gets technology and trained manpower; draft Defence Production and Export Promotion Policy (DPEPP-2020) with provisions to incentivise foreign investment and notification of two positive indigenisation lists to increase business collaboration.
The minister highlighted that, despite the COVID-19 situation, the country’s economy is back on track due to the steps taken by the government.
“India’s Gross Domestic Product has shown a ‘V’ shaped growth curve in the last two years. Where the growth witnessed a contraction of 24 per cent last year, a jump of 20 per cent has been seen in the first quarter of this year. It is a reflection of the country’s sound economic fundamentals,” he said.
Rajnath Singh further said, “we are expecting double digit growth in the financial year 2022 despite the challenge of COVID-19. But, the challenge will be to maintain a healthy growth rate of seven percent to eight per cent in the years after financial year 2022. Under the leadership of Modi, we are preparing for dynamic growth much beyond financial year 2022.”
He said major structural and procedural reforms in the seven years have prepared India to take a quantum jump in terms of growth.
Formulation of progressive and investor friendly tax policies, increased focus on ease of doing business, agriculture and labour reforms are some of the initiatives that have laid the foundation of a ‘New India‘, he added.
Rajnath Singh also lauded the Indian industry for fulfilling the requirement of masks, Personal Protection Equipment kits, ventilators and working with the government to deal with the pandemic. “The industry is playing a significant role in the world’s largest vaccination drive being undertaken in India.”
The 18th Indo-US Economic Summit has been organised keeping in view the important role India and the US can play in the post-COVID-19 economic recovery. Business leaders of India and US attended the event virtually.