Modi pushes for ‘Make in India’ at Aero India show

Bengaluru: Prime Minister Narendra Modi on Wednesday urged the world’s biggest aerospace companies to “Make in India” when he opened the country’s biggest air show in Bengaluru, seeking to use it as a springboard for the ascent of defence manufacturing in India.

“I am delighted to participate in the 10th edition of Aero India. This is the largest ever Aero India. Developing defence system is at the heart of our Make in India programme . This reflects a new level of confidence within our country & global interest in India,” Modi said.

“We need to improve our defence preparedness. Defence output will double if domestic procurement goes up from 40% to 70% in next five years,” he added.

Just a few days before the Union Budget is unveiled, Modi said the government is aiming at building a defence industry that will have room for everyone – public sector, private sector and foreign firms. “We must ensure that our tax system does not discriminate against domestic manufacture in comparison to imports. Our defence industry will succeed more if we can transform the manufacturing sector in India,” he said

Hearing Modi’s inaugural speech at the biennial Aero India were delegates from 328 foreign companies, who joined counterparts from 295 Indian firms participating in the event.

The US with 64 companies had the biggest presence at the event in which 33 other countries are taking part. France is the second biggest participant with 58 companies, followed by the UK with 48, Russia with 41, Israel with 25 and Germany with 17, organisers said.

Past editions of Aero India have featured defence ministers flagging off the event, which showcases the latest in aerospace technology.

India, which procures most of its defence requirements from foreign manufacturers, is expected to spend $120 billion on arms acquisitions over the coming decade. India’s total defence budget allocation is estimated to be $620 billion from fiscal 2014 to 2022, of which 50% would be on capital expenditure.

The annual business opportunity for Indian companies—both public and private sectors—is expected to reach $41 billion by fiscal 2022, according to a report released by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Centrum Capital Ltd on February 6.

“We have to equip ourselves for the needs of the future, where technology will play a major role. Aero India will generate interest in India’s tech capabilities,” the Prime Minister said.

Indian Air Force Sarang Team and air display teams from Sweden, UK, Czech Republic and open sky jump by USA Special Forces are among the top draws at the event. Seven of the 11 foreign military aircraft on display are American – two F-15C Eagles, two F-16C Fighting Falcons, one Boeing KC-135 tanker, one C-17 Globemaster III and a P-8A Poseidon maritime surveillance aircraft. 

Three Rafale fighters of French giant Dassault – shortlisted for acquisition by the IAF – will fly aerobatics displays. Negotiations over the deal for 126 aircraft have hit rough weather.

Modi is the second Prime Minister to inaugurate the event after H D Deve Gowda in 1996.