Manufacturing components with an Indian partner for the proposed $700-million initial gun order of 145 M777 howitzers is set to benefit 40 Inidan Defense firms.It is focused on localised defence production. Talk with corporates like L&T, Punj Lloyd, Ordnance Factory Board, Tata Power, Kalyani Group, Mahindra Group and others are ongoing. Emphasis is mainly on State-owned defence public sector undertakings and medium, small, and micro enterprises in the defence arena. This deal will involve technology transfer in India and ensure capability in technical skills.
India a Manufacturing Economy? India is going to formulate policies to encourage Domestic Defence manufacturing as said by Mr. Arun Jaitley. We are the world's largest arms importer, spending some 1.8 per cent of its GDP on defence. We imports about 70 per cent of defence equipment, a proposition which the government wants to change. We are going to cut on import of Combat planes, Ships and Submarines. This clearly proves that the government is not only focusing on the technological tie ups but also on becoming a MANUFACTURING Economy.
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