Prime Minister Narendra Modi has shown his uncompromised commitment towards making India a defence manufacturing hub. His initiatives slowly but definitely have started making an impact.
The latest entry is a consortium led by the Tata group and Airbus that have started manufacturing C-295 transport aircraft for the Indian Air Force. The manufacturing is being done in Gujarat for nearly Rs 21,935 crore.
Earlier last year in October Prime Minister Narendra Modi laid the foundation stone of C-295 transport aircraft manufacturing facility. The initiative was first of its own kind as never before the private sector company had started an aircraft manufacturing unit in the country. Needless to say the military aircraft will be manufactured in India but could also be used for civilian purposes.
The Prime Minister had then remarked that India was moving forward with the mantra of ‘Make in India, Make for the World.’ Showing his happiness over the setting up of the manufacturing unit that would shape the success of his ‘Make in India’ mission, he had then re-emphasised that India is becoming a huge manufacturer of transport aircraft.
Indigenization through FDI and technology transfer
Although the first pictures of C-295M destined for the Indian Air Force (IAF) have come out, they are not from the India manufacturing unit. As part of the deal also includes the aircrafts that are being built in the Airbus Defence factory in Seville, Spain, they have started coming to India. However, there will soon be a time when the Gujarat based unit will make and deliver C-295s for the Indian Air Force.
Whereas the Indian government under Prime Minister Narendra Modi has eased FDI limits, it has also focused on technology transfers as that is quite crucial for ‘Make in India’. The Prime Minister has reiterated several times that his government is willing to do everything that makes the companies come and invest in India. For instance, thanks to ‘Ease of Doing Business’ companies from more than 160 countries have invested in India in the last 8 years.
Opening up the sectors for investments
Prime Minister Modi has also been emphasising on opening up the sectors that have been seen critical for the government where private investors were kept at bay. He admits that foreign investments are not limited to certain industries, instead they are flocking in large numbers and now investing across 61 sectors of the economy. It’s not that the investments are coming just to a couple of states, almost all 31 states receiving investments.