Defence Minister Rajnath Singh, on Saturday, stated that the Defence Ministry has set an export target of USD 5 billion for the next five years. The minister was speaking at a media event in New Delhi.
"In our envisaged defence production policy, we have clearly spelt out our goal to achieve a turnover of USD 26 billion in aerospace, defence goods and services by 2025, involving an additional investment of nearly USD 10 billion and creating employment for nearly 2-3 million people. This will have huge implications for India’s endeavours to promote R&D, innovation and its efforts to secure a place in global supply chains."
Singh said defence public sector undertakings have been encouraged to increase export portfolio to 25 per cent of their turnover and the government is willing to extend Lines of Credit and grants to friendly foreign countries over the next five years.
"The government aims to achieve exports of defence goods and services to the tune of USD 5 billion in next five years. All possible support would be extended to the private sector so that they can contribute significantly to enable us to achieve the said target," he added.
Highlighting the decision to enhance foreign equity cap from earlier 26 per cent to 49 per cent under the automatic route and up to 100 per cent under the government approval route, he said the measures have begun to show results.
"Till December 2019, the defence and aerospace sector has received inflows of over Rs 3,155 crore. Of this, Rs 1,834 crore has received since 2014. I am sure that the volume of investment will increase manifold when some of the major programmes, which are in the pipeline, move into the execution phase," he added.