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Govt. of Gujarat to boost defence manufacturing in the state

Gandhinagar (Agency): The Government of Gujarat recently announced its Aerospace & Defence policy to embark its commitment to the sector. Today, the Government shared the list of districts where the defence manufacturing facilities shall be setup, these include districts such as Kutch, Bhavnagar, Amreli, Kheda, Vadodara and Bharuch.

As a part of its “Make in India” programme and to promote defence manufacturing sector, the Central Government granted 121 defence manufacturing licenses to various private sector companies. Gujarat has received 20 licenses since May 2014.

With skilled intensive manufacturing capabilities and a robust infrastructure, Gujarat has the right ingredients to become a key link in the Indian Defence supply chain. Some of the growth drivers include –

  1. Robust Physical Infrastructure
  2. Strong Manufacturing & Engineering base with presence of MSMEs across value chain
  3. Availability of highly skilled manpower
  4. World class building & repairing facilities

Collaboration of large business houses with Gujarat’s SMEs and MSMEs can help transform Indian Aerospace & Defence ecosystem. Gujarat stands #1 in terms of the asset base of the MSME sector, according to the Fourth Census of MSMEs. MSMEs play a vital role in various areas of the Defence Sector such as R&D, MRO, Software Development, Casting, forging and metal works, Naval and Land systems, subsystems and accessories, etc.

Speaking on the ecosystem for Aerospace & Defence in the state, Shri PK Taneja, Additional Chief Secretary (Industries & Mines) said, “We’ve already seen great interest from global companies in the area of Aerospace & Defence. Some of these companies have already visited Gujarat and paid multiple visits to proposed sites. As a state, we have the requisite land, coastline and skilled manpower for the sector to flourish. We are in talks with these companies and are hopeful of strategic partnerships on the back of Vibrant Gujarat Global Summit 2017. Additionally, as a part of the ‘Make in Gujarat’ series, we are hosting a seminar on ‘Indian Aerospace & Defence Industry: Synergies for achieving self-reliance, encouraging innovation and Make in India’ on January 12, 2017.”

The state is scheduled to host the prestigious Vibrant Gujarat Global Summit in January 2017 and the event is expected to be attended by industry leaders from Aerospace & Defence sector including participation from companies like Boeing International.

The seminar will be chaired by Mr. Ashok Kumar Gupta, IAS, Secretary (Defence Production) and addressed by key speakers including Mr. V P Yajurvedi, Director General Ordnance Factories (DGOF) & Chairman, Ordnance Factory Board, Mr. T. Suvarna Raju, CMD, Hindustan Aeronautics Ltd. (HAL), Mr. Sudhir Kumar Mishra, CEO & MD, BrahMos Aerospace.

“Gujarat, with its proactive and supportive policy measures, conducive business ecosystem, well established manufacturing supply chain, robust industrial infrastructure, excellent quality of engineering professionals is well poised to take advantages of the new investments likely to come in the A & D sector in India” added Shri PK Taneja.

The Government of India has been active in ensuring reforms in defence procurement to increase business efficiency and develop an indigenous and internationally competitive defence industry base in the country. It has also introduced policies to strengthen technology transfer, including liberalized FDI in defence production. Amendments to Defence Procurement Policy (DPP) 2013 is another progressive step in this direction. Make in India, the flagship programme of Government of India has put a renewed emphasis on creating a conducive policy environment for improving domestic defence manufacturing. The idea is to invite foreign players with both expertise and capabilities to partner at one end and to encourage domestic growth in the sector at the other end.

Policy environment in Gujarat has been designed to offer multiple tangible opportunities to pursue co-development and co-production projects. The proposed associations & partnerships would bring in the strategic advantages of high quality services at competitive costs and lower turnaround time to upstream companies operating in the Indian subcontinent.

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