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Singapore and India should consider exploring the untapped potential of
cooperation in naval ship building, an expert from an Indian naval
think-tank said today.
There are excellent opportunities for the two countries to jointly build
warships in India, given Singapore’s technological and design expertise
and the low production costs in India, particularly in terms of labour
and raw-material, said Captain Gurpreet S Khurana, who is the Executive
Director of the National Maritime Foundation in NewDelhi.
“India has lately offered several incentives to foreign firms to
undertake joint-research and co-development of defence hardware,” he
said. “These include New Delhi’s new ‘mantra’ of ‘Make in India’, the
attendant facilitation of overseas investments, and the raising of
Foreign Direct Investment (FDI) cap on defence from 26 per cent to 49
per cent,” he added.
Mr Khurana was speaking at the conference, “The Merlion and the Ashoka:
Singapore-India Strategic and Defence Ties”, which was organised by the
Institute of Defence and Strategic Studies of Singapore.
He also pointed out that the private sector in India is now being
encouraged to participate in the defence industry, which is hitherto
driven largely by state-controlled or public-sector enterprises. He
noted the strengthening defence cooperation between Singapore and India.
However, Mr Khurana pointed out that defence-technology is conceived by
the Singapore leaders as a facet of cooperation more than a decade ago
during the signing of the bilateral Defence MoU in 2003.
Following that India-Singapore Defence Procurement and System
Development Working Group (DPSD-WG) met in June 2007 to identify the
specific areas of such cooperation the two countries were yet to develop
a functional agenda.
“This facet of Singapore-India defence cooperation must not be seen as
only buyer and seller relationship; both the nations may have to move
towards long term and comprehensive cooperation such as joint scientific
and technological research, development and production of weapons system
and even explore sale to international customers,” he said.
Mr Khurana said he is expecting to see the initiation of defence
hardware co-development tie-ups between India and Japan in the near
future. “There is enormous economic potential for the Japanese to
benefit from India, which is poised to spend a whopping $150 billion on
defence hardware over the next decade, and is creating an in-house
investment-friendly environment”, he said.
“The only hurdle for Tokyo is the restriction posed by the post-World
War II Japanese Constitution on sharing defence hardware and technology
with other countries, which are likely to be overcome sooner than
later.” he added.
Source : India, Singapore Can Consider Warship-Building Venture, Says Expert | idrw.org