Defence Minister Rajnath Singh on Tuesday pitched India as a reliable and long-term defence partner to German firms, inviting them to invest in the country's defence manufacturing sector. Addressing the Indo-German Defence Industry Collaboration event in Berlin, Singh highlighted the significant reforms undertaken by India to boost domestic defence production and ease of doing business.
India's Defence Reforms
Singh outlined several measures taken by the Indian government to attract foreign investment, including the establishment of defence corridors, liberalization of foreign direct investment (FDI) norms, and the introduction of a new defence procurement procedure. He emphasized that India now allows up to 74% FDI under the automatic route and 100% through the government route, making it an attractive destination for global defence manufacturers.
Opportunities for German Firms
The minister urged German companies to leverage India's skilled workforce, robust infrastructure, and growing defence market. He noted that India has set a target of achieving defence exports worth $5 billion by 2025 and is keen on technology transfer and co-development projects. Singh specifically mentioned areas such as aerospace, naval systems, land systems, and cybersecurity as potential avenues for collaboration.
Singh also highlighted the successful partnership between India and Germany in the naval domain, citing the ongoing cooperation on the Scorpene submarines and the recent contract for six advanced submarines under Project-75I. He expressed confidence that the bilateral defence partnership would deepen further in the coming years.
Strategic Significance
The defence minister's visit to Germany is part of India's broader efforts to diversify its defence partnerships and reduce dependence on traditional suppliers. Germany, as a key European partner, offers advanced technology and a strong industrial base that aligns with India's 'Make in India' and 'Atmanirbhar Bharat' (Self-Reliant India) initiatives.
Singh's pitch comes at a time when global supply chains are being reshaped, and countries are looking for reliable partners. He assured German firms that India provides a stable and predictable policy environment, along with a large domestic market and export potential.
Joint Ventures and Co-Development
The minister encouraged German companies to set up joint ventures with Indian firms, emphasizing that such collaborations would not only cater to India's defence needs but also serve as hubs for exports to third countries. He cited the example of the successful joint venture between Tata Advanced Systems and Airbus for the production of C295 transport aircraft as a model for future cooperation.
Singh also invited German companies to participate in the upcoming Aero India and DefExpo exhibitions, which provide platforms for showcasing capabilities and networking with potential partners.
In conclusion, Singh reiterated India's commitment to strengthening the strategic partnership with Germany and expressed optimism that the defence industry collaboration would contribute to regional stability and global security.
