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NEW DELHI: American defence majors Lockheed Martin and Boeing and Sweden’s SAAB-AB are currently scouting for a joint venture partner to make fighter jets in the country, to grab a slice of India’s ₹1 lakh-crore defence manufacturing market.
Following a relaxation of foreign direct investment (FDI) norms in the defence sector, Lockheed Martin Corp chairman Marillyn A Hewson met commerce and industry minister Nirmala Sitharaman earlier this month, and expressed this interest to invest in the sector.
“All three are looking for JV partners to build fighter jets. India is a very big market as far as fighter jets are concerned. Manufacturing here would mean they would be able to sell it here, but over and above that, they will be able to send them to other countries as well,” Sitharaman told HT.
Hewson during her talks shared “several ideas and possibilities of producing and manufacturing a lot of defence parts and components,” and will soon share a detailed plan with the Indian government, she added.
Not just this, Rosoboronex-porton — the Russia state intermediary agency involved in exports and imports of defencerelated technologies and services — is in negotiations for modernising defence requirements in India, she added.
“Russia was the first country after the launch of Make in India, which shared its interest in defence manufacturing, and now we can see them taking the lead along with other countries such as USA and Sweden,” Sitharaman said, expressing hope that more countries will queue up with plans soon.
The government recently relaxed FDI rules in the defence sector, allowing 100% foreign investment by doing away with the condition of access to “state of the art” technology.
It has now been modified to “modern or for other reasons”, a move that will widen the scope of investment by foreign players.
The new norms are also applicable for manufacturers of small arms and ammunitions covered under the Arms Act 1959. Under the current policy, FDI up to 49% is allowed under the automatic route, and beyond that through the approval route.
FDI in defence stood at around $0.08 million during January-December 2015.
“Given the pro- reform approach of the Indian government and recent changes in policies related to defence procurement and FDI, India is the place to be,” said Amber Dubey, head of aerospace and defence at KPMG in India.
http://www.hindustantimes.com/busin...ts-in-india/story-0mcKDUUtYvQcedFf1HbT6J.html
Following a relaxation of foreign direct investment (FDI) norms in the defence sector, Lockheed Martin Corp chairman Marillyn A Hewson met commerce and industry minister Nirmala Sitharaman earlier this month, and expressed this interest to invest in the sector.
“All three are looking for JV partners to build fighter jets. India is a very big market as far as fighter jets are concerned. Manufacturing here would mean they would be able to sell it here, but over and above that, they will be able to send them to other countries as well,” Sitharaman told HT.
Hewson during her talks shared “several ideas and possibilities of producing and manufacturing a lot of defence parts and components,” and will soon share a detailed plan with the Indian government, she added.
Not just this, Rosoboronex-porton — the Russia state intermediary agency involved in exports and imports of defencerelated technologies and services — is in negotiations for modernising defence requirements in India, she added.
“Russia was the first country after the launch of Make in India, which shared its interest in defence manufacturing, and now we can see them taking the lead along with other countries such as USA and Sweden,” Sitharaman said, expressing hope that more countries will queue up with plans soon.
The government recently relaxed FDI rules in the defence sector, allowing 100% foreign investment by doing away with the condition of access to “state of the art” technology.
It has now been modified to “modern or for other reasons”, a move that will widen the scope of investment by foreign players.
The new norms are also applicable for manufacturers of small arms and ammunitions covered under the Arms Act 1959. Under the current policy, FDI up to 49% is allowed under the automatic route, and beyond that through the approval route.
FDI in defence stood at around $0.08 million during January-December 2015.
“Given the pro- reform approach of the Indian government and recent changes in policies related to defence procurement and FDI, India is the place to be,” said Amber Dubey, head of aerospace and defence at KPMG in India.
http://www.hindustantimes.com/busin...ts-in-india/story-0mcKDUUtYvQcedFf1HbT6J.html
