‘Indigenisation key to defence manufacturing’
Indian and foreign companies should create an ecosystem for aerospace that would establish a solid base for the nation’s defence and economic systems that needed a sustained acceleration, speakers at a CII meet said here.
By : migrator
Update: 2017-06-24 05:23 GMT
Chennai
Speaking at the conference with ‘Make in India—Fast Developing Ecosystem for Aerospace and Defence Industry’ theme, Jayakar Krishnamurthy, CMD, UCAL, said aerospace and defence needed four major things for growth, which included a vast land mass, abundant natural resources, sustainable population around and distribution of equitable economic growth. Krishnamurthy, also the Conference Chairman, said the defence spending by Russia stood at $84 bn whereas the US spent $610 bn.
Similarly, nations like Germany, Japan, UK and Israel spent $41 bn, $46 bn, $48 bn and $17 bn respectively on defence. India spent $56 bn on defence notwithstanding its large size in area and population density. “But when we compare on the R&D investment, Israel tops the list with 4.3 pc whereas India is the lowest at 0.9 pc. It is impossible for India to keep importing Defence equipment without making R & D investments,” he said, calling for investments in R & D that would lead to sustainable economic and defence growth.
Stating that India needed to develop an ecosystem similar to that of successful automotive industry model which comprises Tier 1, Tier 2, Tier 3 and R & D, Krishnamurthy, sought a proper policy evolved in the sphere of “Design & Make in India” for a bright future.
B Elangovan, MD, Tidel Park Limited, said TN has emerged as a leader in manufacturing sector with its ecosystem allowing automobile majors set up shops in the state and thereby making Chennai as the Detroit of India.
Stressing on the importance of aerospace sector, he said there are 120 units in aerospace with 700 suppliers in the arena. “India is emerging as a country with the highest rate of spending on defence and aerospace with as many airlines ordering 700 aircraft in the last few months,’’ he said and added, “Chennai Aerospace Park in Sriperumbudur situated on a 250-acre site would have in it 50 aerospace companies with a business opportunity for Rs 5000 crore.’’
Anil Kumar, GM, Engine Factory, Avadi, Ministry of Defence, said there are 41 companies in the manufacture of automated combat vehicles, rockets and equipment for the defence force.
He wanted public and private sector to involve themselves in the manufacturing of defence-related things, besides formulating an ecosystem for major indigenisation without relying much on imports.
Retired Vice-Admiral B Kannan, MD-CEO, L&T Shipbuilding Ltd, also stressed on an ecosystem with a strong base for indigenisation, manpower, financial empowerment and enabling a digital technology for enhanced productivity.
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