Rajnath Singh urges US firms to carry out R&D, manufacturing of defence equipment

Defence Minister Rajnath Singh has urged US companies to take advantage of the government’s policies to carry out R&D, manufacturing and maintenance of defence equipment. This is part of the vision of ‘Make in India, Make for the World’. The minister was addressing members of the American Chamber of Commerce in India (AMCHAM India) through video conferencing on Thursday. 

He asked US companies to co-produce, co-develop, promote investment and development of maintenance, repair and overhaul facilities in India. 

“With increasing business, we aspire for increased investments by US companies in India. Making full use of the Industrial Security Agreement, we need to facilitate collaboration & indigenisation of defence technology and boost the participation of US and Indian companies in each other’s defence supply chains. American companies are welcome to establish manufacturing facilities in India,” he said. 

The Defence Minister also spoke of the initiatives taken by the government to facilitate partnerships between major original equipment manufacturer (OEMs) and Indian companies, as mentioned in a statement by the Ministry of Defence. He added that the government is focussed on enhancing the share of defence manufacturing, export by India-based companies and joint ventures. 

US companies are not only a source of FDI and employment in the country, but also contribute to India’s defence exports, which amounted to $2.5 billion to US in the last five years. This translates to 35 per cent of total exports achieved during the period. 

The minister said that the recently held India-US 2+2 Ministerial Dialogue was positive and fruitful. He stated that the “ties are built on foundational agreements, military-to-military engagements, cooperation in enhancement of defence capabilities, defence trade and technology cooperation, mutual logistic share and now a new emphasis on co-development and co-production.”

The minister said that the US-India relationship should move from buyer-seller to partner nations and business partners. “We have a growing convergence of strategic interests as both countries seek a resilient, rules-based international order that safeguards sovereignty and territorial integrity, upholds democratic values and promotes peace and prosperity for all. Both India and the US share a common vision of a free, open, inclusive and rules-based Indo-Pacific and Indian Ocean Region. The India-US Comprehensive Global Strategic Partnership is of critical importance for international peace, stability and prosperity,” Rajnath Singh added.

He said that the bilateral trade between the two countries have rebounded in the past year, surpassing $113 billion in goods. India’s participation in global supply chains was increased and surpassed $400 billion in exported goods for the first time in history, he added.

Rajnath Singh confirmed the countries’ intent to cooperate in emerging tech such as advanced communication technology, artificial intelligence, quantum science, STEM, semi-conductors and biotechnology. The minister asked the private industry to develop and undertake joint research and development projects, mobilise finance, promote technologies, and enhance technical collaboration. 

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