Gandhinagar, Oct 20: Terming exports as a key pillar for long-term sustainability of the domestic defence industry, Defence Minister Rajnath Singh on Thursday said the government has set itself a target of achieving defence exports of USD 5 billion by 2025.
Speaking at an event at the 12th Defence Expo here, he also said the government was eyeing overall turnover of USD 22 billion in defence production in the same timeframe.
“Domestic demand alone may not always provide economies of scale to make profitable investments and sustain them,” Singh said, speaking at a seminar jointly organised by the US-India Business Council and Society of Indian Defence Manufacturers at Mahatma Mandir.
The seminar was on the theme ‘New Frontiers in US-India Defence Cooperation: Next Generation Technology, Innovation & Make in India’.
“The USD 5 billion export target set for 2025 reflects the intent of the government for export-oriented manufacturing,” the Union Defence minister added.
He also invited US defence companies to set up manufacturing units in India and develop technological collaboration with Indian industries to create a “global supply chain free from vulnerabilities and uncertainties”.
Singh highlighted the steps taken by the government to boost local defence manufacturing such as increase in procurement categories.
“We are delighted to work with the US, our valued partner, to strengthen our commercial and strategic relationship and to attract US investment for creating a high-technology defence production ecosystem in India.
For India, collaboration with US companies would be an important strategic force multiplier, apart from being wealth and job creator,” Singh added. (PTI)
