Jamshedpur, July 22: In the wake of the recent policy reforms in Defence Sector including the release of the new Defence Procurement Procedure 2016 which enables greater participation of Indian Industry in Defence R&D and Production, the Defence Sector is expected to lead the Make in India initiative of the Government with over USD $250 Bn worth of procurement over next 10 years.
CII Jamshedpur organised a Session on Doing Business with Defence on 22 July at Center for Excellence with a thrust to highlight the existing and emerging business opportunities in defence sector for small and medium industries in Jamshedpur.
The Indian aerospace and defence market presents an attractive and significant opportunity for Indian and foreign companies across the supply chain. India has the third-largest armed forces in the world, and its defence budget is about 1.90% of its GDP. India is one of the largest importers of conventional defence equipment and spends about 40% of its total defence budget on capital acquisitions.
Killol Kamani Chairman CII Jamshedpur Zonal Council mentioned that a USD 10 billion worth 126 medium multi-role combat aircraft (MMRCA) deal is just a case in point. There are several such defence deals either in the pipeline or being envisioned to strengthen India’s force structure.
Estimates show that the Indian Air Force (IAF) will have more than 1000 fighter jets and around 60 squadrons by 2030. He further mentioned that the Ministry of Defence has recently released the DPP (Defence Procurement Procedures) 2016 with new policy measures to streamline the procurement process and enhance / encourage participation of Indian Industry in defence sector.
The provisions of new DPP which lay high emphasis on Indigenous design, development & manufacture; when viewed together with the above mentioned initiatives and guidelines for Vendor development and enhanced out-sourcing by DPSUs and Ordnance Factories; have the potential to generate very large business for Indian private industry.
Amitava Bakshi , Chief Procurement Officer ,Tata Steel Limited mentioned that with Jharkhand state accounting for 17.6 % of the total steel production of the country and Jamshedpur being the manufacturing hub of the state with an industrial area housing more than 500 operational units , it becomes imperative to highlight the existing and emerging business opportunities in defence sector for small and medium businesses.
Rear Admiral Pritam Lal(Retd) highlighted the need to participate in the defence sector ,which has huge unlocked potential . With the government keen on Defence manufacturing and to remove the bottlenecks in the procurement process and also simplify /rationalize various aspects of the defence procurement set-up. on private industry participation in this sector , the opportunities for private players is huge .
A.K.Srivastava ,Convener MSME Panel CII Jharkhand delivered the formal vote of thanks for the session.
At the event, Loveleen Bhardwaj, Head CII Jamshedpur Zonal Office and others were present.