We need to increase defence preparedness, modernise forces: PM Modi

Inaugurating Aero India 2015, the biggest air show in Asia, the PM said: “We do need to increase our defence preparedness. We do have to modernise our defence forces…We have to equip ourselves for the needs of the future where technology will play a major role.”

He said that the event is a platform to launch the nation’s defence manufacturing sector.

PM Modi also emphasized on developing India's defence industry with a sense of mission with preferences to defence equipment manufacturing initiatives.

“We want to become exporter of defence equipment. About 60 percent of our defence equipment continues to be imported. Even 20-25 percent cut in defence imports will create 1 lakh jobs. This is one area where we don’t want to be No 1 in importing defence equipment,” he added.

Studies showed that even a 20 to 25 percent reduction in imports could directly create additional 100,000 to 120,000 highly skilled jobs.

“If we could raise percentage of domestic procurement from 40 to 70 percent in next 5 years we would double the output in our defence industry…This is why it (defence) is at the heart of Make in India programme,” he said. 

He said that significant reforms have been introduced in the offsets policy. “I am acutely aware that it still needs a lot of improvements. We will pursue them. I want our offsets policy not as a means to export low-end products but to acquire state-of-the art technology and skills. We must involve our scientists, soldiers, academia, industry and independent experts more closely in research and development,” he pointed out.

PM Modi said that the tax system should not discriminate against domestic manufacture in comparison to imports.

“Our defence industry will succeed more if we can transform the manufacturing sector in India…We want to develop an industry that is dynamic. It should constantly stay at the cutting edge of the global industry. I am confident that India will emerge as a major global centre for defence industry,” he said.

The PM said that a strong Indian defence industry would not only make India more secure it would also make the nation more prosperous.

“We will build an industry that will have room for everyone - public sector, private sector and foreign firms…Aero India can be a catalyst in realising our goals. That is why I am here today,” Modi said.