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<keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>'s <keyword id="19938893" type="General" weightage="20" keywordseo="defence-exports" source="keywords">defence exports</keyword> have surged from Rs 15 billion in 2017 to Rs 210 billion in 2024, registering a CAGR of 46 per cent, highlighted a report on 'Defence Conference 3.0' by Antique Stock Broking. The report stated that the <keyword id="20861069" type="General" weightage="20" keywordseo="global-shift" source="keywords">global shift</keyword> towards a China+1 strategy and the impact of the <keyword id="20016971" type="General" weightage="20" keywordseo="Russia-Ukraine-war" source="keywords">Russia-Ukraine war</keyword> offer India additional opportunities to fill supply chain gaps, potentially boosting its share in the <keyword id="23046732" type="General" weightage="20" keywordseo="global-defence-industry" source="keywords">global defence industry</keyword>. The report noted that the country's long-term goal is to become a global defence manufacturing hub is driven by Defence Public Sector Undertakings (DPSUs), private enterprises, start-ups, and MSMEs. "Indian defence exports have grown multi-fold from INR 15 bn in 2017 to INR 210 bn in 2024 at a CAGR of 46%. The China + 1 strategy and the Russia-Ukraine war provides an additional opportunity for India to fill the gap created in the supply chain and hence increase its contribution to the global defence industry," the report read. The report added that to achieve this target a well-developed domestic ecosystem is crucial as lower import content in products accelerates approvals by reducing international conflicts. The report added that the Ministry of Defence has taken key initiatives to attract Indian private players and global Original Equipment Manufacturers (OEMs) include establishing aerospace parks and defence corridors, fast-tracking project approvals, and enhancing development and testing facilities. Highlighting the potential in India's Maintenance, Repair, and Overhaul (MRO) segment the report explained that it holds a significant potential for global aerospace companies due to its technical expertise and cost-competitive solutions. "India provides a huge opportunity in the <keyword id="23046733" type="General" weightage="20" keywordseo="MRO-segment" source="keywords">MRO segment</keyword> for global aerospace leaders given the expertise the country provides as well as the cost efficiency solutions compared to its global competitors" the report added. India aims to increase domestic defence turnover to Rs 3 lac crore by 2029, Rs 500 billion targeted for exports. This growth will help reduce the Government of India's import bill as India remains the world's largest importer of defence equipment. Under the Atmanirbhar Bharat initiative of the government, 75 per cent of the defence capital outlay is now reserved for domestic players, up from 49 per cent in FY21. Given the geopolitical challenges and modernisation needs of its Armed Forces, the report added that India plans to invest Rs 8.3 lac crore in domestic procurement, offering substantial business opportunities for local companies. "India intends to place orders worth INR 8.3 trn through domestic procurement and thus it presents a massive business opportunity for local players" it added. As per the Ministry of Defence, India's defence manufacturing sector has witnessed an increase of 16.8 per cent in the fiscal year 2023-24. This significant increase marks the highest-ever growth in the country's defence production value. The total value of defence production reached Rs 1,26,887 crore this year, up from the previous year's figures.

India's defence exports surge to Rs 210 billion after global shift towards China+1, Russia-Ukraine war: Report

As India is looking towards a long term, strategic partnership between <a href="http://www.businessinsider.in/searchresult.cms?query=defence&amp;sortorder=effectivedate">defence</a> ministry and the private sector, the initiative has been divided into five sub-groups.

	The Ministry of Defence led by <a href="http://www.businessinsider.in/searchresult.cms?query=manohar+parrikar&amp;sortorder=effectivedate">Defence Minister Manohar Parrikar</a> has cleared composition of the five sub-groups constituted for focused discussions on the strategic partnership model for selected platforms in the defence sector.

	READ ALSO: <a href="http://www.businessinsider.in/Here-is-the-complete-information-of-23-projects-that-defence-ministry-is-taking-up-under-Make-in-India-initiative/articleshow/52092916.cms">Here is the complete information of 23 projects that defence ministry is taking up under Make in India initiative</a>

	The first sub-group for Armoured Fighting Vehicles will be chaired by Col (Retd) H S Shankar, Chairman, FICCI Defence sub-committee on Indian Defence SME and will have representatives from the Defence Research and Development Organisation (DRDO) and two star rank officers from the Armoured Division of the Army Headquarters.

	The second sub-group, which will have discussions on platforms such as Aircrafts and Helicopters (fighter, transport, etc), will be headed by Sukaran Singh, who is Co-Chairman of CII National Committee on Defence. This group will also have participation from <a href="http://www.businessinsider.in/searchresult.cms?query=drdo&amp;sortorder=effectivedate">DRDO</a> and two star rank officers from Air Head Quarters.

	Sub-group-III that will focus on platforms including Submarines and their major systems will be chaired by Jayant Damodar Patil, Chairman FICCI Defence Committee and will comprise representatives from DRDO and two star rank officers from the Naval Head Quarters. Rear Admiral Pritam Lal (Retd), who was member of the Dhirendra Singh committee of experts, will also be a member of this Sub-group-III on submarines.

	Ammunition including smart ammunition will be the focus area for Sub-group-IV and will be headed by Neeraj Gupta, MD, MKU Pvt Ltd and nominee of industry association, ASSOCHAM. As in other sub-groups, this sub-group will have DRDO representatives and two star rank officers from the Army HQs. This sub-group will be facilitated by Wing Commander Vani Mishra, PO (Systems).

	Sub-group V will look into macro process management of issues related to eco-system, technical competence, financial evaluation, weightage to existing infrastructure, commitment of partner for life cycle support and other regulatory matters.

	This sub-group will be chaired by Rajinder Bhatia, Co-chairman, CII national Defence Sub-committee on Land Systems and will also comprise of DRDO representatives.

	As per sources, chairpersons of each of these five sub-groups have been asked to expeditiously complete the discussions on their relevant topics and be ready with their respective presentations latest by June 3, 2016.

	Parrikar had held a consultative meeting with the industry associations on April 25 on the issue of strategic partners for defence sector from private sector.

	(Anupama Airy is the Founder and Editor of EnergyInfraPost.com and DefenceAviationPost.com. She can be reached at <a href="mailto:anupama.airy@gmail.com" target="_blank">anupama.airy@gmail.com</a>​, Twitter handle: @anupamaairy)

	<o:p> </o:p>

India’s defence manufacturing deals will take place under these 5 categories

Since the launch of ‘<keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword>’ program, considerable thrust has been given to <keyword id="2377476" type="UNKNOWN" weightage="20" keywordseo="defence-manufacturing">defence manufacturing</keyword>. Transformation from being one of the largest importers of arms into a credible defence equipment manufacturer takes a lot. 
 
Country’s defence spending is expected to go beyond USD 600 billion by 2022 and every private company indulged into defence manufacturing wants a pie of that, especially when USD 150 billion of contracts are there to be awarded within a few years. 
 
Current scenario of Imports: 
 
 
 
 
Some of the Indian Companies in Defence Sector: 
· Mazagon Dock Ltd 
· Mishra Dhatu Nigam Ltd 
· Mahindra Defence Systems with Bae Systems &amp; Seabird Aviation (Private Player) 
· Rolta ( A Private Player) 
· Tata Advanced Systems with Boeing,Sikorsky Aircraft Corporation &amp; Israeli Aerospace Industries 
· Ashok Leyland ( Private Player) 
· Bharat Dynamics Ltd 
· Bharat Earth Movers Ltd 
· Bharat Electronics Ltd ( BEL) 
· Bharat Forge 
· Electronics Corporation of India Ltd (ECIL) 
· Garden Reach Shipbuilders &amp; Engineers Ltd 
· Goa Shipyard Ltd 
· HCL with Boeing &amp; Circore Aerospace Inc (Private Player) 
· Hindustan Aeronautics Ltd ( HAL) 
· Reliance Defence 
 
Defence Manufacturing, Exports and its future: 
 
Indian exports are negligible when it comes to the total market share on a global level. India has exported defence equipment to 22 countries over last one year, including UK, US, Israel and Russia. India exported forging equipment, electronic assemblies, flight panel controls to the US. 
 
India exported transmitting tubes to UK and MIG &amp; Sukhoi 30 aircraft spares and services to Russia. India’s major exports included Cheetal helicopters to Afghanistan, Dhruv helicopters and bulletproof jackets to Nepal, Sukhoi avionics and MIG spares to Malaysia, offshore petrol vessels and ammunition to Mauritius and Jaguar aircrafts and spares to Oman. 
 
Indian private players are looking for foreign partners as the foreign direct investment in defence sector is pushed up to 49%. Reliance defence had signed a manufacturing and maintenance deal potentially worth $6 billion with Russia's Almaz-Antey, the maker of an air defence system. Apart from the Akash air defence system, the government had cleared the purchase of five S-400 air defence systems that are estimated to cost about $4.5 billion. 
 
Similarly kalyani group tied up with Rafael of Israel to make Spike Anti-tank missiles for the Indian military. 
 
Indian private players are still far away from accessing the key sensitive technologies related to fighter aircrafts and nuclear submarines however they are approaching fast by the virtue of transfer of technology and domestic manufacturing set-up under the make in India program. What must is to invest heavily in R&amp;D facilities along with the collaboration of key government institutions like DRDO with the private partners. Incoming demands for defence equipment is heavy and it should only be fulfilled by boosting the manufacturing process along with minimum government interference and a feasible policy framework. 
 
(Image: Indiatimes)

Defence Manufacturing: Is India Inc. ready?

While a number of military modernization programs are long pending for want of funds, analysts are of the opinion that India needs to allot more funds for the defence. While the budget 2019 to be announced on July 5 has triggered a lot of expectations from across different sectors, here we discuss why India’s defence needs more budget at this point. The latest defense budget for 2019 announced by the Modi’s government towards the end of its first tenure featured only a moderate 6.87 percent bump of $49.68 billion. Widespread beliefs say this rise is not adequate to support the modernization programs visualized by the government and also the government’s make in India initiatives for the defense requirements. Last time, a total amount of $16.91 billion was allocated for the purchase of new weapons and the other kinds of military hardware. This was a rise when compared to the $14.68 billion allotted during the previous financial year. However, there are also a number of liabilities to be addressed which might chip away the funds. Hence only a significant increase in the defense budget can adequately address the needs of the defense sector in the country. Considering the liabilities in front of the government, Amit Cowshish, ex financial advisor for the Defense Acquisition Ministry says the budget will need to raise the allotment for the defense sector significantly. If this does not happen, the Ministry will have to manage the things as it has been doing in the past. The latest allotment for the defense sector pegged at $9.6 billion is more than five times of what Pakistan is allotting for its defense sector. Pakistan’s defense budget is barely enough only to maintain its basic operations. However, considering the aspirations of the country and the zeal to modernize the military, India will need to allot more for the defense. While announcing the <keyword id="547606" type="ORGANIZATION" weightage="20" keywordseo="interim-budget">interim budget</keyword> for 2019 just before the elections, Piyush Goyal, the then Union Minister for Finance and Corporate Affairs assured that additional funds would be pooled in in order to make the country defense-prepared and also to maintain its borders. The government already has a number of commitments and liabilities in the defense sector like paying for Rafale fighters, helicopters, S-400 missile systems and warships and helicopters. Hence only a significant increase in allotment for the country’s defense will suffice the growing requirements of the military. The budget that will be announced on July 5, 2019 will be the first one to be announced by Nirmala Sitharaman, the new finance minister who takes charge after being the defense minister during the last tenure of the BJP government. Hence we can expect that she is familiar with the real needs of the defense sector and so she could have given her best in the budget to address the growing needs of the defense sector in the country. We need to wait and see if this assumption comes true by way of the military sector receiving more funds in the full budget 2019.

Why India's defence budget needs more money

US President <keyword id="15962" type="PERSON" weightage="20" keywordseo="Barack-Obama">Barack Obama</keyword> has signed into law the $618 billion <keyword id="32723" type="COMPANY" weightage="60" keywordseo="Defence">defence</keyword> budget for 2017, which enhances security cooperation with India and conditions nearly half of the funding to Pakistan on a certification that it is taking demonstrable steps against the <keyword id="125988" type="COMPANY" weightage="20" keywordseo="haqqani-network">Haqqani Network</keyword>, as per an agency report. 
 Currently vacationing in Hawaii, <keyword id="16284" type="PERSON" weightage="100" keywordseo="Obama">Obama</keyword> yesterday signed the National Defence Authorisation Act (<keyword id="932755" type="UNKNOWN" weightage="60" keywordseo="NDAA">NDAA</keyword>) 2017, which asks Defence Secretary and Secretary of <keyword id="6355728" type="ORGANIZATION" weightage="60" keywordseo="state">State</keyword> to take steps necessary to recognise India as <keyword id="20819" type="ENTERTAINMENT" weightage="60" keywordseo="America">America</keyword>'s "major defence partner". 
 A summary of the bill released by Chairman of the <keyword id="502407" type="ORGANIZATION" weightage="20" keywordseo="Senate-Armed-Services-Committee">Senate Armed Services Committee</keyword> Senator <keyword id="27703" type="PERSON" weightage="20" keywordseo="John-McCain">John McCain</keyword> said NDAA-2017 "enhances security cooperation" between the US and India. 
 
It also asks the administration to designate an individual within the executive branch who has experience in defence acquisition and technology to reinforce and ensure, through inter-agency policy coordination, the success of the Framework for the US-India Defence Relationship; and to help resolve remaining issues impeding US-India defence trade, security cooperation, and co-production and co-development opportunities. 
 
The NDAA, which among other things creates a $1.2 billion Counter-ISIL Fund, imposes four conditions on Pakistan to be eligible for $400 million of the $900 million of the coalition support fund (CSF). 
 The US Defence Secretary needs to certify to the <keyword id="1575" type="ORGANIZATION" weightage="20" keywordseo="Congress">Congress</keyword> that Pakistan continues to conduct military operations that are contributing to significantly disrupting the safe haven and freedom of movement of the Haqqani Network in Pakistan and that <keyword id="3002" type="COMPANY" weightage="20" keywordseo="Islamabad">Islamabad</keyword> has taken steps to demonstrate its commitment to prevent the Haqqani Network from using any of its territory as a safe haven. 
 Early this year, US Defence Secretary <keyword id="6696528" type="PERSON" weightage="20" keywordseo="Ashton-Carter">Ashton Carter</keyword> refused to give a similar certification to Pakistan due to which it was not given USD 300 million under coalition support fund. 
 
In his signing statement, Obama did not mention to any of these provisions of the bill, but he did expressed disappointment over certain other provisions in NDAA-2017. 
 He said: "I remain deeply concerned about the Congress's use of the National Defence Authorisation Act to impose extensive organisational changes on the <keyword id="252320" type="ORGANIZATION" weightage="20" keywordseo="Department-of-Defence">Department of Defence</keyword>, disregarding the advice of the Department's senior civilian and uniformed leaders. 
 
"The extensive changes in the bill are rushed, the consequences poorly understood, and they come at a particularly inappropriate time as we undertake a transition between administrations. These changes not only impose additional administrative burdens on the Department of Defence and make it less agile, but they also create additional bureaucracies and operational restrictions that generate inefficiencies at a time when we need to be more efficient."

US president Obama recognizes India
as ‘major defence partner’, conditions
funding to Pakistan

India is preparing country-wise profiles of defence products and platforms to promote their exports and the government will stand "side by side" with the domestic industry in this endeavour through diplomatic channels, a senior Defence Ministry official said Monday. Raj Kumar, secretary, Department of Defence Production, said at a webinar that the domestic defence industry will hold web interactions with the representatives of friendly countries to figure out what kind of products and platforms they require. "We are preparing country-wise profiles of products, weapons and platforms which are probably needed by our friendly countries. So we are now planning to start web interaction led by the industry," Kumar said. "That country's defence attache, our DPSUs (defence public sector undertakings), industry, will then figure out what is in the store for us to promote there for exports," he said. Kumar said the government will be standing side by side with the domestic industry through its defence attaches, embassies and diplomatic channels to promote exports. To promote indigenous production, the Defence Ministry on August 9 announced restrictions on import of 101 weapons and military platforms including light combat helicopters, conventional submarines and cruise missiles under a staggered timeline till 2024. Kumar said a second list of import-restricted defence items will be notified soon. "This is the first list we are examining and then a second list will also come. We expect you (industry) to come forward and start investing to meet our requirements," he said at the webinar -- "Army Make Projects 2020" -- organised by FICCI. The senior official said as successful domestic bidders move to the defence equipment production stage, his department will share their details with the UP and Tamil Nadu defence corridor authorities, who "will compete in attracting your units to their respective states". He said since the three services are making efforts to push the "Make II" category of defence production projects, he will interact with project participants to understand their concerns and share best practices among the services. As secretary of the Department of Defence Production, Kumar heads the collegiate committee that approves the "Make II" category of projects. Under the Make II category, no government funding is given to the Indian company for the prototype development process. If a prototype developed by the company meets the standards set by the armed forces, an order is placed for such equipment or platforms. "Everything, whether it is defence industrial corridor, or whether it is defence production and export promotion policy, or whether it is a negative list - everything works in the same direction that we have to be among the top producers of defence items," he said. On August 9, Defence Minister Rajnath Singh said the ministry was now ready for a "big push" to indigenous defence manufacturing in tune with Prime Minister Narendra Modi's call for an "Atmanirbhar Bharat" (Self-Reliant India). India is one of the most lucrative markets for global defence giants. The country has figured among the top three global importers of military hardware for the last eight years. The Indian armed forces are projected to spend around USD 130 billion in capital procurement in the next five years. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/tech-mahindra-hcl-tech-wipro-and-likes-are-hoping-global-5g-race-resumes-next-year-bringing-some-large-deals-before-that/articleshow/77583638.cms">Tech Mahindra, HCL Tech, Wipro and likes are hoping global 5G race resumes next year⁠ — bringing some large deals before that</a> <a href="https://www.businessinsider.in/international/news/gaza-strips-only-power-plant-may-run-out-fuel-in-the-next-24-hours-following-israel-border-shut-warns-expert/articleshow/77584765.cms">Gaza Strip's only power plant may run out fuel in the next 24 hours following Israel border shut, warns expert</a> <a href="https://www.businessinsider.in/tech/apps/news/the-heat-is-on-mark-zuckerberg-in-india-as-facebook-and-whatsapp-incur-the-ire-of-modis-rivals/articleshow/77575358.cms">The heat is on Mark Zuckerberg in India as Facebook and WhatsApp incur the ire of Modi's rivals</a>

After import embargo, India is creating country profiles for its defence exports

The face of the Indian defence sector is changing rapidly with a strong focus on indigenisation. The man leading that change is Manohar Parrikar, India’s defence minister. Parrikar has worked hard over the last one-and-a-half years to bring a complete turnaround in the defence establishment. 
 
In a latest interview, Parrikar spoke about his future plans and the key security issues facing the country. 
 
Q. The new Defence Procurement Policy (DPP) is being referred to as a game changing policy for the sector. How do you see it altering the Indian defence growth story? 
 
A. In the new DPP, we have tried to shift the focus on Make-in-India, small and medium scale industries. We are also stressing on time-bound procedures. 
 
The defence sector has a strange set of procurement procedures, which do not normally exist for other procurements. One obvious reason is that products need to be tested as unless successful testing is conducted, the costly equipment can’t be procured. So testing is a major criteria and this was, so far, not allowed to Indian private companies and was resulting into major delays. So the new DPP opens up testing facilities. Various defence PSUs are also offering facilities to the private sector. The new DPP will address these concerns of the industry in detail. 
 
Q. The <keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword> initiative is gaining steam. The new category of ‘Indigenously Designed, Developed and Manufactured’ (IDDM) equipment reverses the local mix from 70:30 to 30:70. Do you have any timelines for its implementation? 
 
A. It won’t happen overnight. In the new DPP for IDDM, it will be only now that things will be processed. Orders may be placed after one year and actual production will start after a year. So, it is in 2017 that we will start seeing the real impact. Of course, some push that we had given earlier would result in some shifting of the balance during the current year. 
 
Q. We see a sudden rush from big corporates who want to invest big time in the defence sector. Already some 50 MoUs have been signed and over 350 licenses given. Is there any kind of a mechanism that you are going to put in place to monitor that everything that is being talked about actually takes-off? 
 
A. Unlike other sectors, the buyer is only one except for exports, which we have opened up. In fact, the recorded NoCs for export granted by us in spite of the fact that we have reduced the number of items under restricted export in defence, has almost tripled as compared to last year and grown by five times the earlier years. We are now touching around Rs 2000 crore this year. I expect growth of another 50%-100% because of offsets. 
 
In the next year, we should cross Rs 1 billion in exports, which itself will be an achievement. Except the export part of it, the rest is produced and purchased by the Indian defence forces. These are part of preparations. These are not actual fructification. The fructification will happen in the current year for some in the private sector whom we are already placing orders with. In fact, Tata’s have developed 6x6 (truck for Indian army), Larsen &amp; Toubro is in the final stage of getting the order for self-propelled guns. 
 
Q. Will the entry of private companies affect the role of defence PSUs and DRDO? 
A. PSUs are also part of Make-in-India. We are asking them to broaden their vendor base and get products outsourced so that the private industry also develops in course. 
 
Q. Indian defence companies say their products are comparatively much cheaper to, say those supplied by US companies, like for example the ultra-light weight howitzers developed by the Kalyani Group is around 50% cheaper than that manufactured in the US. Aren’t we spending a lot for importing equipments like these? 
 
A. I am not aware of the costs but I will definitely find out. We are serious on indigenously developed products and I will talk to them. 
 
Q. Are you happy with the budget allocation? How would you in the present constraints of fund allocation priorities your plans on modernization? 
A. I don’t see a big fund constraint. Let me put it this way, in a month if a family eats say 20 kg of rice they may consume around 500 grams a day --- so budgets have to be seen in that angle. What do I require today? One is my committed liabilities. I am talking about capital acquisition so if I have placed orders with the vendors then as they supply I have to go and pay. For example, Apache Helicopter for which I placed the order in October. It will be supplied in 2018. Initially, I paid some 15%. The total including the weapon package was about Rs 21,000-22,000 crore. I paid only Rs 3000 crore. How much do I require as per the calibrated payment terms --- maybe I will require another Rs 1500 crore this year and Rs 1500 crore next year and maybe some Rs 5000 crore or Rs 8000 crore the year after. So what I do today has its impact in next 5-10 years and what was done in 2012-13 is going to reflect now. 
 
Q. What about China and Pakistan’s participation in the Defexpo? 
A. I don’t see a big issue in inviting or not inviting. Traditionally, they have not been invited but I think from China we had some people to visit if I am not mistaken. There is no calibrated decision specifically taken in this regard. 
 
Q. The double finance scrutiny first by MoD and then by finance ministry is making defence procurement cumbersome. Why should there be a double scrutiny at all? 
A. Ask that question to the finance ministry. If you ask me it is a triple level --- MoD, then our own finance department and then the MoF. I think it’s a case for a higher delegated power. It will be taken up but I don’t see it as a big problem. I have no problem in finance expenditure going through it. 
 
Q. Your comments on the government’s plans to cut foreign vendor contracts by 30% in the next two years? 
A. We don’t intend to cut. We intend to purchase locally so automatically the procurement from outside will reduce. 
 
Q. In Rafale jet deal pricing is a big issue? Even the law ministry has recently raised some objections? 
A. Price is equally important. While I want the aircraft, I will definitely be interested in the right price. The objections are being attended to. 
 
Q. Your government is completing two years in office? How do you think it has performed? 
A. I am happy because this government is doing more than reasonably well. The foundation is already there and lot of things have been done by this government which had been in limbo for last 10-12 years so I feel that in another one year we would be very clearly reaping the benefits of the seeds that have been sown by this government and things that have been done by this government.

Parrikar: Real impact of Make in India in defence sector will be seen in 2017

India and Japan have agreed to ‘upgrade and strengthen’ their defence cooperation as they asked officials to begin talks to promote defence equipment collaboration and finalise the modalities for the sale of Japanese US—2 <keyword id="2498414" type="UNKNOWN" weightage="100" keywordseo="Amphibian-aircraft">amphibian aircraft</keyword>. 
 
 “The two Prime Ministers reaffirmed the importance of defence relations between India and Japan in their strategic partnership and decided to upgrade and strengthen them,” a joint statement said. 
 
“We intend to give a new thrust and direction to our defence cooperation, including collaboration in defence technology and equipment, given our shared interest in peace and stability and maritime security. We have also decided to expand our cooperation in advanced technology, science and technology, people—to—people exchanges, educational exchanges, etc,” Modi said at the joint press briefing with Abe. 
 
“The two Prime Ministers expressed hope that this would usher in a new era of cooperation in defence equipment and technology. They recognised the enormous future potential for transfer and collaborative projects in defence equipment and technology between the two countries,” the statement said. 
 
He also announced to set up a special team in his office to deal with proposals from Japan and also offered membership in his new team to two people selected by Japan.

India And Japan To ‘Upgrade
And Strengthen’ Defence Cooperation

The government has permitted <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> (FDI) of up to 74 per cent under the automatic route in the defence sector with a view to attracting overseas investors, according to a press note issued by the DPIIT on Thursday. However, foreign investments in the defence sector would be subject to scrutiny on the grounds of national security and the government reserves the right to review any foreign investment in the sector that affects or may affect national security, the Department for Promotion of Industry and Internal Trade (DPIIT) said in the note. As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry -- 49 per cent under the automatic route, while beyond that government approval was required. According to the Press Note 4 (2020 series): "FDI up to 74 per cent under automatic route shall be permitted for companies seeking new industrial licences". It also said that infusion of fresh investment up to 49 per cent, in a company not seeking industrial licence or which already has government approval for FDI in defence, shall require "mandatory" submission of a declaration with the defence ministry in case change in equity/shareholding pattern or transfer of stake by existing investor to new foreign investor for FDI up to 49 per cent, within 30 days of such change. Proposal for raising FDI beyond 49 per cent from such companies will require government approval, it added. "The decision will take effect from the date of FEMA (Foreign Exchange Management Act) notification," it said. The decision to permit up to 74 per cent FDI in the <keyword id="2377476" type="PERSON" weightage="20" keywordseo="defence-manufacturing">defence manufacturing</keyword> through the automatic route was announced by Finance Minister Nirmala Sitharaman in May while announcing the fourth tranche of the Rs 20 lakh crore stimulus package for the coronavirus-hit economy. In July 2018, the government had relaxed foreign direct investment norms in the defence sector by allowing up to 49 per cent FDI under the automatic route. The move was aimed at boosting domestic industry as India imports about 70 per cent of its military hardware. According to the DPIIT data, defence industries has received FDI equity inflows of USD 9.52 million (Rs 56.88 crore) during April 2000 and March 2020. Under the government route, foreign investors have to take prior approval of the respective ministry/department, while in the automatic route, the investor just has to inform the RBI after the investment is made. Total FDI into India increased by 18 per cent to USD 73.45 billion in 2019-20. SEE ALSO: <a href="https://www.businessinsider.in/sports/news/dailyhunt-app-founders-confirm-ipl-2020-associate-sponsorship/articleshow/78169667.cms">EXCLUSIVE: Dailyhunt founders confirm IPL 2020 associate sponsorship — promise new release for Josh ahead of India’s biggest cricket tournament</a> <a href="https://www.businessinsider.in/stock-market/markets/news/hcl-tech-enters-the-list-of-top-10-most-valued-companies-in-india/articleshow/78165311.cms">HCL Tech enters the list of top 10 most valued companies in India</a> <a href="https://www.businessinsider.in/science/space/news/first-intact-planet-found-circling-a-dead-star-this-jupiter-sized-anomaly-is-in-orbit-rather-than-being-pulled-apart-at-the-seams/articleshow/78166938.cms">First 'intact' planet found circling a dead star — this Jupiter-sized anomaly is in orbit rather than being pulled apart at the seams</a>

Foreign investors can now pump in up to 74 % FDI under automatic route in India's defence sector

India's defence budget has seen a small increase

New Delhi, Nov 29 () The UK India Business Council (UKIBC) on Friday announced the establishment of the Aerospace and Defence Industry Group to boost bilateral cooperation in the areas.
 "This initiative recognises that the UK-India relationship in aerospace and defence is at a critical turning point and is another demonstration of the close ties between Indian and UK industry," UKIBC said in a statement.
 It stated that in 2019, a memorandum of understanding on 'defence technology industrial capability cooperation' was signed between the UK and India which highlighted the UK government's approach towards enhancing cooperation with India, and the defence vertical is an example of how this cooperation is being taken to a new level.
 "The Aerospace and Defence Industry Group will support and build on the huge opportunities for collaboration that exists between the defence industries of the UK and India. The collaboration will not only advance India's defence acquisition process but also foster long-term technology and hardware transfers," UKIBC Vice-Chair Richard McCallum said.
 "We support the Government of India's Make in India initiative and believe that the Aerospace and Defence Industry Group can contribute to India's continued emphasis on defence modernisation and sophisticated military capabilities, which will be a win-win for both the UK and India," he added.
 The Group has been formed after suggestions of the Defence and Security Organisation and with the support of the UK Defence Solutions Centre, ADS Group Ltd, the Department for International Trade, and industry.
 The core members of the group include Rolls-Royce, BAE systems, Thales UK, MBDA, Leonardo, TVS Logistics, PEXA, Pattonair and Cranfield University. RSN HRS

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