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India Expands Defence Manufacturing With 250 MoUs, Boosts Foreign Investment

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India is making bold strides in defence manufacturing with the signing of over 250 Memorandums of Understanding (MoUs) to set up industrial units in the Defence Industrial Corridors of Uttar Pradesh and Tamil Nadu, Defence Minister Rajnath Singh announced at the Aero India 2025 CEO Roundtable Conference on Monday.

Highlighting India’s growing role in the global defence industry, Singh stated that these agreements would accelerate domestic defence production and attract foreign investments, strengthening India’s position as a major defence exporter.

India Opens Doors for Higher Foreign Investment in Defence

Singh revealed that the Indian government has significantly eased restrictions on Foreign Direct Investment (FDI) in the defence sector:

  • 75% FDI is now permitted through the Automatic Route for companies seeking a new defence license.
  • 100% FDI is allowed under the government approval route, creating greater opportunities for global defence manufacturers to collaborate with Indian firms.
  • So far, 46 companies and joint ventures have received approvals for foreign investments, signaling rising international confidence in India’s defence market.

Evolving Warfare Demands Advanced Defence Technologies

Discussing the rapidly changing nature of modern warfare, Singh emphasized the need for continuous innovation in military technology. He pointed out that:

  • Traditional hardware-based defence systems are increasingly being replaced by software-driven solutions.
  • Military operations are becoming more complex, requiring advanced communication, space-based navigation, and surveillance systems.
  • Recent conflicts have demonstrated the growing importance of drones and autonomous warfare technologies, necessitating India’s focus on developing countermeasures for emerging threats.

Singh highlighted the remarkable rise in India’s defence exports, noting that the country has witnessed a 31-fold increase over the last decade compared to 2013-14. He attributed this surge to government initiatives aimed at simplifying export procedures, including the introduction of the Defence Exim portal, which has streamlined the authorization process for exporting defence products.

Aero India 2025 Showcases India’s Aerospace Ambitions

Inaugurating the Aero India 2025 exhibition in Bengaluru, Singh described the event as the “MahaKumbh of Defence and Aerospace”, symbolizing India’s resilience and innovation in the sector. He noted that in an era of global security challenges, such platforms allow India to demonstrate its defence capabilities, foster international partnerships, and explore new technological frontiers.

Singh also stressed that India is committed to becoming a global defence manufacturing hub, with a focus on self-reliance, technological advancement, and strategic collaborations. He called on industry leaders to leverage India’s growing defence ecosystem, emphasizing that discussions at the CEO Roundtable would play a crucial role in shaping future initiatives in defence innovation and security strategies.

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