Indian Defence Industries need oxygen of private sector: govt

10th September 2015
Indian Defence Industries need oxygen of private sector: govt
From left: K. Krishnamoorthy, Vice Chairman, IESA, Vinay Shenoy, Chairman, IESA, R S Sharma Chairman TRAI, KD Nayak, Director R&D, DRDO, Shubhra Singh Joint Secretary , DIPP, Govt. of India and Martin Lechner, Executive Director, Business Unit New Technologies - MMG International at the IESA DEFTRONICS 2015 inauguration, New Delhi, September 9 2015

New Delhi, Septembe10, 2015: Investment in the electronics manufacturing sector has not achieved its potential yet, though the current demand in the sector is valued at USD100 billion, said   Telecom Regulatory Authority of India  Chairman R.S. Sharma.  He was inaugurating the two-day Deftronics 2015 organised by India Electronics and Semiconductors Association (IESA)  here,  yesterday.
India’s electronics manufacturing sector is poised for a leap in the coming years, with investment worth over USD400 billion likely to come into the sector in the coming years, he added.
This is the second edition of Deftronics, with the first held in Bangalore last year.
Kalyani Group Chairman and Managing Director Baba Kalyani, in his theme address called this  moment in the sector’s historyan opportunity when the world economy is slowing and India isn’t much impacted. “The global economy is staring at a pronounced slowdown with the exception of India as the only bright spot. With Increased FDI inflow, favourable policy environment, the Indian GDP is expected grow upwards of 7 percent this year and it is an opportune time for Indian manufacturing in particular.”
Shubhra Singh Joint Secretary Department of Industrial Policy and Promotion said, “Defence is an industry where the government is the primary spender and it sets the rules. Of the entire demand, only about 30 percent is manufactured in India and that too by the Public sector.  Defence sectors are dependent on Defence Public Sector Unitss. The only way to rewrite this imbalance is to bring in the Private Sector. To promote this, we need to create domestic base first."

In the last one year,the defence sector has opened up systematically, raising FDI from 26 percent to 49 percent and this can go even more on a case-to-case basis, she added.