Modi government urges private sector to invest in defense innovation
What's the story
India's defence sector is at a turning point, propelled by strong public sector momentum, yet slow private investment continues to weigh it down.
Defence Secretary Rajesh Kumar Singh shared this view at a Confederation of Indian Industry (CII) event held in New Delhi on Thursday.
He emphasized that while the defense sector has grown 6-7% annually over the past decade due to government-led initiatives, future growth must come from increased private sector participation and R&D investment.
Strategic advantage
Singh emphasizes India's strategic position and innovation potential
Singh stressed India's strong position in competitive strategic deal-making and its evolution into an innovation-led, tech-driven industrial economy.
However, he also acknowledged the challenges that continue to plague defense manufacturing such as licensing bottlenecks, procedural delays, and red tape.
"We need to reduce all hurdles and promote ease of doing business in defense," he said while stressing on the need to streamline procurement processes.
Budget utilization
Defense modernization budget fully utilized for 1st time
Singh also noted that the defense modernization budget was fully utilized for the first time in years, ending a long-standing trend of underspending due to slow procurement decisions.
He said this would speed up the pace of modernization.
Despite defense expenditure falling to 1.9% of GDP, Singh maintained it is enough to meet current modernization goals and reiterated government's long-term defense vision is based on self-reliance.