In a bid to boost sagging armament sales abroad, India on Tuesday invited foreign companies to collaborate with domestic defence production companies to export Indian products.
"I invite guests to take advantage of skills in India and collaborate with companies here for exporting defence products to other countries," Defence Minister Pranab Mukherjee said while inaugurating the 4th DefExpo in New Delhi.
The minister's offer comes in the wake of recent slump in the country's armament exports with official figures putting it at less than Rs 80 crore (Rs 800 million) compared to the peak of Rs 160 crore (Rs 1.6 billion) in 2002-03.
Mukherjee's remarks come as the government is all set to evolve the new offset policy which has made it mandatory for foreign suppliers to source from Indian firms 30 per cent of the goods and services for their defence supplies in contracts of over Rs 300 crore (Rs 3 billion).
He said India realises the importance of technological interdependence and wishes to enter mutually beneficial partnership with friendly countries.
Mukherjee said India has eight defence public sector enterprises, 39 ordnance factories and 50 laboratories under the Defence Research and Development Organisation.
"We want the defence production units to have a market approach. They should bring in latest technologies and develop state-of-the-art products for domestic use and export," Mukherjee said.
As many as 420 companies from 39 countries are participating in the 4th Defence Expo jointly organised by the ministry of defence and Confederation of Indian Industry with latest figures indicating that India's expenditure on procurement touched a staggering Rs 25,000 crore (Rs 150 billion).
Major international armament companies are offering innovative models of partnership.
Secretary Defence Production K P Singh earlier said the government has revised policy so that Indian defence industry can become a global player.
The new offset policy throws up great opportunities and challenges, he said adding it will put an obligation on the seller to partner Indian companies.
The Expo this time has seen the participation of foreign countries jump by 50 per cent as compared to the last edition. The next Def-Expo would be held from 16-19th February 2008.
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