‘Make in India’ is opportunity for US companies

IDD Bureau

Explaining how its ‘Make in India’ policy was an opportunity for US companies New Delhi has suggested it can host new production lines, participate in US export orders for the Asian market and host maintenance repair and overhaul (MRO) facilities for US equipment operating in the Indo-Pacific.

Indian Defence Minister Rajnath Singh, speaking at a press-meet in New Delhi after the 2+2 India –US dialogue on October 27 was candid, saying  “ We have invited US companies to invest in India and take advantage of 74 percent FDI ( foreign direct investment) under the automatic route  or even a larger equity, with Government approval”.

India has a substantial requirement which can sustain investment for years, said the Indian Defecne Minister while answering a question at a  joint press meet. Indian Foreign affairs minister Dr S Jaishankar, US Secretary of State Mike Pompeo and Secretary Defense Dr Mark T Esper were present at the press-meet.

Singh said India has explained – to Pompeo and Esper –how its newly made reforms in acquisition policy enhance incentive for investment in Indian defence industry.  It is about creating an eco-system for defence  industry through  partnership and investment.

“India also explained to  the US delegation that production and assembly lines can be used for exports of goods and services to Asia.  Also US made equipment operating in Asia can be maintained at facilities in India”, said Singh.

In the Defence Industrial Cooperation area, India and the US had a very candid and useful discussion. “Recent initiative of ‘Atmanirbhar Bharat’ ( self-reliant India) Defence sector was underlined as a key driver and a guiding factor of our Defence Industrial Cooperation. I highlighted the capabilities of Indian Defence Industry and their usefulness in the supply chain of major US platforms and systems.”

A joint statement of the two countries later said “Ministers decided to work together to realize the development of their respective defense industries”.

The two sides have stated their intention of fast tracking projects under the existing framework of the Defence Technology and Trade Initiative (DTTI).  We have identified priority Near-Term projects for joint development between respective agencies, which need to be fast tacked under the DTTI. These include  three joint projects on air-launched unmanned airborne systems (UAS), lightweight small arms technology, and innovations in the field of intelligence, surveillance, targeting and reconnaissance (ISTAR)

India looked forward to the participation by the U.S. Government and defense industry at the upcoming Aero-India in February 2021.

An inaugural meeting between the Indian Defence Innovation Organization (DIO-IDEX) and US Defense Innovation Unit (DIU) was conducted in July 2020.

The inaugural Industrial Security Annex (ISA) Summit will be conducted this year and is aimed at strengthening defense industrial cooperation between both countries. The ISA, inked in December 2019, opens opportunities for the US companies to cement a place to partner New Delhi in its expected $ 100 billion expansion plan over the next few years.  India has an annual $ 10 billion or more ‘modernisation’ budget. Read  the full explainer here 

The two countries have decided to have a Military Cooperation Group (MCG) which is slated to review bilateral military-to-military engagement including joint exercises, training and expert exchanges.