Govt's endeavour is to bring down defence imports by USD 2 billion by next year: Rajnath Singh

Defence Minister Rajnath Singh onFriday said with an aim of encouraging the manufacture ofdefence related items in the country, the government'sendeavour is also to bring down its defence imports by atleast USD two billion by 2022.

Speaking at the Aero India-2021 here, he also said theaerospace sector has an important role to play, if India hasto reach its targets of domestic defence production of USD 25billion and exports of USD five billion by 2025.

''With an aim of encouraging the manufacture of defencerelated items in India, our endeavour will remain to bringdown defence imports by at least USD two billion by 2022.

Between 2016 and 2019, as many as 138 proposals worth over USD37 billion for domestic manufacturing have been approved,''Singh said.

The order for 83 LCA MK 1A worth over Rs 48,000 crore thathas been given by the government will give a big boost todomestic manufacturing and especially to the aviationindustry, he said, adding it would spawn new and resilientsupply chains.

''The negative list of 101 items for import also means toprovide opportunities for the domestic manufacturing sector tostrengthen their base and contribute to Aatma Nirbhar Bharat,''he added.

Singh said this was the 13th edition of Aero India and theevent has evolved over a period of time to become one of theworld's premium aero shows. Strategic ties had been forgedthat are poised to transform the defence and aerospacemanufacturing in the country.

''We have signed 128 MoUs, 19 ToTs, 4 Handing Overs, 18Product Launches and 32 Major Announcements, totaling a grandfigure of 201 feats. Further, 45 MSMEs participating in AeroIndia 21 have already bagged orders worth Rs 203 crore. Thisis a major achievement,'' he said.

Noting that the fountainhead of any capability emergesfrom the robustness of its foundation, the Defence Ministersaid the country's foundation of vision rested on threepillars of Research and Development, Public and PrivateDefence Production and Defence Exports.

Initiatives have been taken to encourage and facilitateprivate sector research and development initiatives, he said.

Speaking about Defence corridors in Uttar Pradesh andTamil Nadu, Singh said, as part of this initiative Rs 3,700crore and Rs 3,100 crore have already been pledged by thepublic and private industries.

Further the plan entails USD three billion investment inthe corridors to improve the investment climate and facility,he said.

''We realise, appreciate and understand that in a highlyspecialised and technology driven environment, acollaborative, cooperative and collective approach to defenceproduction and exports is the way forward.'' A large number of initiatives have been taken to inviteand facilitate the partnership of major companies from acrossthe world and to become a part of Indias defence industrialinitiative, he said, adding it was with this objective thatFDI cap in the sector was raised to 74 per cent from 49 percent in August last year.

A robust domestic manufacturing base relates directly tothe potential for defence exports.''We plan to move from a USD11 billion defence base to USD 25 billion by 2025. Of this, wefurther intend to create an export component of USD fivebillion,'' the Minister said.

During the period 2015-2020, defence exports grew from Rs2,000 crore to Rs 9,000 crore.

It was also important to note that a vast majority of ourdefence exports are being spearheaded by the private sector,he said.

Singh also said the Indian aerospace industry, bothmilitary and civil, stands uniquely poised today, on thethreshold of catapulting itself into the global arena, addingthat the aero components sector is set to grow from Rs. 30,000crores today to Rs 60,000 crores by 2024.