French firm Naval Group lauds FDI limit hike in defence sector, endorses Make in India

French firm Naval Group welcomed the Modi government's decision to hike Foreign Direct Investment (FDI) limit to 74% in the defence sector saying the move will support Indian military industry to increase its capabilities and also invite global manufacturers to invest and create manufacturing bases in India.

"We welcome the forward-thinking announcement to increase the foreign direct investment (FDI) limit in defence to 74 per cent under automatic route. This will support the Indian defence industry, as part of economic sustenance post-COVID-19, to increase its capabilities. This also may attract foreign OEMs to gradually invest in the sector and create technical and manufacturing bases in India," Naval Group's Senior Executive Vice President Alain Guillou told ANI in email communication.

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Make in India push needed

Guillou said the Indian government should soon share details of the new FDI policy with the industry along with its integration with the new Defence Procurement Policy-2020 to empower the Make in India policy.

On the government emphasis on acquiring Make in India products, he said, "Naval Group is the only foreign manufacturer to have established an Indian company solely for the purpose of 'Make in India' by developing the Indian defence eco-system and building design services with talented Indian engineers."

"The country needs to expand its defence manufacturing sector to boost exports and ensure sustainability through attaining the economies of scales and selling at competitive prices... Indian government's emphasis has been steadily in above-mentioned areas and thus in the right direction towards self-sustenance and self-sufficiency on the face of the ongoing crisis," he said.

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Asked how would the coronavirus affect the Indian defence sector, Alain Guillou said the pandemic is impacting the defence sector in many ways, but the full extent and duration will only be known in the coming months.

"However, India also has to uphold its national security and dominance in the Indian Ocean Region, which will necessitate staggered but well-planned defence procurement. We believe that submarine remains one of such important and strategic procurement in these times."

(With ANI inputs) (ANI photo)

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