Exuding confidence, Army chief General Manoj Pande has said the Indian industry can quickly deliver on urgent requirements of the armed forces, adding that the local industry can bag contracts worth Rs 7-8 lakh crore in the next eight years.
“In the last three to four years, indigenous contracts have grown three times. In the next seven to eight years, we feel that the potential of the indigenous market will be about 7-8 lakh crore. It will be a viable market with adequate scope for the defence industry,” Pande said responding to a question by ET
Pande further added that the army needs new technologies in several domains of warfare, such as artificial intelligence-based satellite imagery interpretation, drone and counter drone systems and mobility of troops which presents a feasible market for the private industry and start-ups in defence production ecosystem.
Worth mentioning here is that Prime Minister Narendra Modi said on Wednesday India has added 101 more military items that will only be procured domestically.
The Army chief said one of the key learnings from the ongoing Ukraine war has been the critical need to promote domestic defence production ecosystem and cut import dependence, especially when it comes to ammunition, adding that measures have been taken to improve the private sector’s understanding of the armed forces’ needs.
“We are handholding startups and smaller companies by making firing ranges available, easing trial and testing procedures, and making it easier to conduct demonstrations in forward areas so that the industry is able to understand our operating environment better,” the financial quoted the Army chief as saying.
Pande said as per the earlier rounds of emergency procurements for troops deployed in the northern borders, contracts worth Rs 6,000 crore were placed and the process allowed the armed forces to test out new equipment, which can form the basis of larger capital procurements.
The fourth round of emergency procurements, which are currently being processed by the army, will concentrate on indigenous products.
Meanwhile, in an earnest attempt to promote the private sector to take part in defence production, the defence ministry earmarked 25 per cent of the domestic capital acquisition budget or Rs 21,149 crore for the sector, the ministry had said in a statement in April this year.
