Raksha Rajya Mantri Shripad Naik has said that the Indian defence and aerospace industry was today on the threshold of transformation, under the several initiatives of Govt of India to promote ‘Make in India’ and ‘Atmanirbhar Bharat Abhiyaan’. Naik was delivering the Inaugural address at the fifth edition of the conference on ‘Aerospace and Defence Manufacturing Technologies’ in New Delhi on Wednesday.
The theme of the conference is ‘Empowering India with the Aatmanirbhar Bharat Mission’.
Naik exhorted that the Indian aerospace and defence industry has to rise to the occasion to shoulder greater responsibility in making the nation self-reliant in defence production and achieve $26 billion domestic production by 2025, which was the stated objective of the Defence Production Policy.
Speaking about the challenge posed by COVID-19, Naik said, “COVID has caused, across the globe, severe economic and social challenges. In our national efforts over the last four months, we have been successful to first create high awareness among our large population, build adequate capacity for testing and providing healthcare, and manage the rate of spread of the virus.”
Having taken steps to save the lives of citizens, the country now into the next phase of a national effort to save livelihoods, he added. He hoped that the industry and economy would soon rebound.
Indian A&D Sector Witnesses Rapid Growth
The Indian civil aviation market is one of the fastest-growing markets in the world with the tourist footfall increasing at 20 per cent every year and the growth is expected to continue with the plan of investments of about $1.83 billion in the development of airport infrastructure by 2026. Speaking about global aircraft maintenance, repair and overhaul (MRO) Naik said, “The Indian market is yet to catch up. The Indian MRO market is estimated at $800 million and is growing at about 8 per cent annually against a 4 per cent world average.”
The Indian civil aviation MRO market, at present, stands at around $900 million and is anticipated to grow to $4.33 billion by 2025, increasing at a CAGR of about 14-15 per cent.
In recent years, the defence sector has grown extensively. It has increased at a CAGR of 9.7 per cent from 2008 to 2016, reaching current levels of $42.83 billion in the year 2017-18. The aerospace and defence industry in India is estimated to reach around $70 billion by 2030. Naik said, “India's aerospace and defence market has tremendous growth potential and strong fundamentals to be globally competitive and further develop into a leading hub and net exporter for design, manufacturing, engineering, technology development and services.”
Detailing the efforts made by the Ministry of Defence over the years, Naik said, “The Department of Defence Production has established wide-ranging production facilities for various defence equipment through the ordnance factories, defence public sector undertakings (DPSUs) and encouraging private defence industry.”
The webinar was jointly organised by the Tamil Nadu Technology Development & Promotion Centre (TNTDPC), Society of Indian Defence Manufacturers (SIDM), and the Confederation of Indian Industry (CII).