NEW DELHI (NewsRise)--India plans to let overseas companies own bigger stakes in defense joint ventures in a renewed push to draw more foreign investment and turn into a global production hub for military hardware.
The world's largest arms importer also plans to encourage greater private sector participation in its defense industry, dominated by state-run companies and plagued by long delays in product development.
The draft Defence Production Policy 2018, unveiled Thursday, has set an ambitious aim of a more than threefold jump in defense industry revenue to 1.7 trillion rupees ($26 billion) by 2025. By then, it expects the defense industry in the South Asian country to rank amongst the top five globally.
"(Foreign Direct Investment) up to 74% under automatic route will be allowed in niche technology areas," according to the draft policy. The defense ministry, which prepared the draft, has sought comments until the end of March. The policy has to be approved by the federal cabinet before it is implemented.
Analysts said India's grand goals are challenging, and can only be achieved if the government has a long-term, dedicated strategy toward fostering a local defense industry with active participation of private companies and replacing its archaic procurement policies.
"India's objectives sound similar to those of South Korea and Turkey which also want to develop their own defense industries. Reality is, there is not room for everybody up there (in the top five)," said Guy Anderson, a London-based defense industry analyst at Jane's by market researcher IHS Markit.
India was the world's largest arms importer in the four years through 2017, making up 12% of globally traded arms, according to the Stockholm International Peace Research Institute, or SIPRI, which tracks global arms sales. "The tensions between India, on the one side, and Pakistan and China, on the other, are fuelling India's growing demand for major weapons, which it remains unable to produce itself," said Siemon Wezeman, senior researcher at SIPRI.
India has over the years purchased billions of dollars of military hardware including fighter jets, warships, aircraft and missiles from its biggest supplier, Russia, as well from the United States, France and Israel. The country has been trying to modernize its military to narrow the gap with its belligerent neighbor, China, as well as long-time rival, Pakistan.
According to the draft policy, the government plans to pursue selling smaller stakes in state-run defense enterprises and engage more actively with the private industry to exploit the opportunities in the defense sector.
Anderson said "India has enormous untapped potential in terms of human capital and capacities". But private sector in the defense industry "is still in its infancy" as state-owned companies still receive most arms deals due to factors such as national security concerns.
JAMSHEDPUR: Padma Shri T V Mohandas Pai said on Saturday Indian economy is growing fast and will become an USD 10 trillion economy by 2030 but warned that challenges ahead are crucial.
Delivering a speech on the theme 'Leadership in the age of disruption' at the 62nd convocation of XLRI-Xavier School of Management, Pai, who is the chairman of Manipal Global Education and Aarin Capital, said: "The world shall witness trade wars between the developed and developing countries in the immediate future as countries like India that have the potential and willingness to grow shall outdo several European countries in their march towards attaining the ambitious goal of rich economies.
"Keeping in tune with the future scenario that shall be the age of disruption, we need to develop a leadership that is not only competent and receptive to the challenges but equally smart and adaptive to the situation," Pai said. He added that the problem solving attitude, having right set of people in the decision making loop and ability to reconstruct the organizational structure should be the fundamentals of a successful business leader.
Source:- The Times of India
In a first such initiative, the Western Railway has joined hands with automobile giant Maruti Suzuki India Ltd (MSIL) to transport its cars by train from its plant in Gujarat to other parts of India, an official said here on Saturday.
The first such train (rake) loaded with 125 Maruti-Suzuki cars in 25 NMG coaches left the Maruti plant in Detroj to Nidvanda in Bengaluru Division of South-Western Railway, a distance of 1m716 km.
The entire consignment of cars was loaded in less than four hours, said WR Chief Spokesperson Ravinder Bhakar.
The Indian Railways tie-up with MSIL is expected to benefit the carmaker’s new manufacturing facility near Becharji station in Patan district which produces around 250,000 vehicles per annum, with plans to increase the production capacity in future.
For the operation from Detroj, MSIL and WR have developed a stacking area of 8000 square metres with a capacity to stack for handling up to two NMG rakes.
The Detroj railway station itself has been developed with minimum capital expenditure with MSIL partnering with Indian Railways in the transportation business.
Bhakar said the WR will not only transport the manufactured cars to all destinations in the country but also provide logistic solutions for export of the vehicles.
“This initiative is a great beginning for the development of industry and Gujarat state for making it a hub of car production in near future,” he said.
Railway Minister Piyush Goyal has lauded the new freight loading initiative commenced by the WR.
“From transporting autos to Amul butter, Indian Railways gives you the most economical, safe, timely and environment friendly transportation. Adopt it today!” he tweeted.
Source:- Financial Express
A trade promotion group organized by China's Ministry of Commerce is visiting India to strengthen economic and trade ties and pragmatic cooperation between the two countries.
The group, which arrived here Friday and will stay until Tuesday, is composed of officials from the Ministry of Commerce and more than 30 representatives from various sectors including textile, pharmaceutical, petrochemical industries as well as commercial trading, agriculture and others.
On Saturday in New Delhi, the Chinese side and India's Commerce and Industry Ministry jointly organized the promotion of the China International Import Expo (CIIE), to be held in November in Shanghai, and the signing ceremony of India-China trade cooperation projects, according to a news release from the Chinese delegation.
During the signing ceremony, a total of 101 trade agreements were signed, the release said.
The economic and trade relations between China and India have maintained a rapid developing momentum in recent years, with bilateral cooperation bearing remarkable fruits, Chinese officials said at the ceremony.
Indian representatives said that the visit by the Chinese delegation provides a practical platform for promoting the economic and trade ties between the two countries, which shows that the Chinese government highly appreciates bilateral trade.
They expressed the belief that the visit will help promote win-win cooperation and further strengthen bilateral trade relations.
The Indian side also appreciated the promotion of the CIIE, saying many Indian enterprises are looking forward to participating in the expo as a first step to venture into the Chinese market.
Modi wishes people on the eve of Srirama Navami
Ramayan inspires not only Indians but entire ASEAN region
To give ryots, at least 1.5 times input cost as MSP
Let us diffuse awareness about Yoga. Let us all practice yoga
The Prime Minister began his radio address on Sunday saying he had received many letters, emails, phone calls from people across India to speak on certain subjects, including healthcare. He spoke on 'Fit India’ calling upon all young people to come together to launch a movement of 'Fit India'".
Modi said a healthy India is as vital as a clean India. "In case of health, the country has moved past conventional approaches and surged ahead. Earlier, health was looked after only by the Health ministry but today all government arms are working towards creating a 'Healthy India'.
Along with the emphasis on preventive healthcare, affordable healthcare is also being promoted," Modi said. He urged the people to be more conscious about preventive healthcare because prevention was not only beneficial for a person but also for his or her family and society.
Modi said the government has set a target to free India from tuberculosis by 2025 and that the government and insurance companies will jointly provide Rs 5 lakh insurance cover to about 10 crore families per year.
"Under 'Ayushman Bharat Yojana', the Indian government and insurance companies will jointly provide Rs 5 lakh for treatment to about 10 crore families or say 50 crore citizens per year," he said.
Farmers' concerns and MSP
The Prime Minister also addressed farmers' concerns and said the latest Union Budget declared the Minimum Support Price (MSP) to be at least one and half times of the input expenditure. “In this year’s Budget, a big decision has been taken to ensure that farmers get a fair price for their produce.
“It has been decided that the MSP of notified crops will be fixed at least one and a half times of their cost," Modi said. He also recalled Mahatma Gandhi, Lal Bahadur Shashtri, Ram Manohar Lohia, Chaudhary Charan Singh and Chaudhary Devi Lal and said they too spoke about the importance of agriculture and welfare of farmers. Modi also said that the world's outlook on India has changed immensely.
Modi also mentioned Babasaheb Ambedkar and said India is grateful to him for his vision for irrigation, port development. He lamented that many people mocked Bhimrao Ambedkar and made efforts to ensure that the son of a backward family does not progress but noted that today's 'new India' is altogether different as it belongs to the poor and the backward.
He lauded Ambedkar's sense of self-reliance and said that the government takes inspiration from him. "He never wanted a person to lead a life in poverty. He also believed that their poverty isn't removed with charity. Today, Mudra Yojana, Start-Up India initiatives are producing youth innovators and entrepreneurs in the country," Modi said.
Speaking of Foreign Direct Investment, Modi said that India was a bright spot in the world's firmament. "Today, India receives the most amount of foreign direct investment in the world. The entire world looks at India as a hub for innovation and development," he said.
Source:-The Hans India