Page 13 - MMI_-- JulyAug2021 (single)

MSMEs are involved in the de- increased demand for aircraft of around $23 billion including
fence supply chain. India has besides the rise in defence capi- export of about $4.7 billion in
allocated an estimated $45 bil- tal expenditure paving way for aerospace and defence goods and
lion for defence budget for 2020- opportunities in defence and services by 2025.
2021. India’s defence exports aerospace. In the long-term, the In a recent development that
have risen by over five times in Indian aerospace and defence could have wider ramifications
the last four years with the total market is pegged to reach $70 in the Aero-Defence sector, Kar-
exports rising from an estimat- billion by 2030, providing sig- nataka is coming up with a new
ed $204 million in 2016-17 to nificant opportunities for pro- aerospace and defence policy.
around $398 million in 2020-21. duction, maintenance, repair, Industry analysts opine that the
The FDI limit for defence has overhaul, and sales for civil and state is likely to announce some
been raised from 49 to 74 per- defence applications. new investments that would en-
cent in the automatic category As per Economic Survey 2020- courage global companies that al-
and more than 5,000 products 21, India spent about $1.8 billion ready have a presence in the aero-
are expected to be indigenized on space programs in 2019-20. space park and aerospace special
by 2025. Foreign players estab- FDI up to 100 percent is allowed zone on the outskirts of Bengalu-
lishing manufacturing set-up in in satellites establishment and ru. Other cities such as Hyderabad
India need to invest in plant and operations, subject to sectoral and Chennai are also emerging as
machinery which is favorable guidelines by the Department aerospace, defence and aviation India can
stay in the
for the Machine Tool and Manu- of Space or ISRO (Indian Space hubs attracting investments from race only
facturing sectors. With the Gov- Research Organisation). The large corporations for manufac- through
ernment launching the scheme Space industry is growing at turing aero-structures, fuselage, invest-
for the promotion of MSMEs in a good pace with rocket pro- and engine spare parts. ments in
Defence, preference is being ac- duction and an increase in the technology
and intense
corded to indigenously designed, number of satellite launches by Manufacturing galore R&D. With
developed, and manufactured ISRO. India announced itself as Undoubtedly, these sectors look the Gov-
products. Conventionally, Ben- a player in space exploration for MSMEs with proven solu- ernment
galuru-based large public sector by launching the civilian moon tions to meet their supply chain and indus-
undertakings such as Hindustan mission – Chandrayaan 2 and and aggregate requirements. The try working
together,
Aeronautics Ltd (HAL), DRDO, is also planning for a manned Manufacturing industry needs tangible
Gas Turbine Research Establish- space mission – Gaganyaan. to brace up to offer critical com- results can
ment (GTRE), Aeronautical De- India’s Aviation sector contrib- ponents and assemblies which be achieved
velopment Agency (ADA), BEML utes $30 billion to the national are currently imported. The and the
(previously Bharat Earth Movers GDP and the domestic Aviation Manufacturing industry, partic- vision of
Make in
rd
Ltd), Bharat Electronics Ltd (BEL), market is projected to rank 3 ularly the Machine Tool indus- India and
National Aerospace Laboratories globally by 2024. The country is try, needs to consider deploying Atmanir-
(NAL), etc. along with Ordnance one of the fastest-growing avi- high-technology, high-precision bhar Bharat
Factories in different parts of the ation markets with the Interna- machinery for ultra-precision can be
country have been involved in tional Air Transport Association machining, superfinishing, exotic realized.
defence production. However, (IATA) expecting India to cater to material machining, multi-task-
the recent decision of the Govern- 520 million passengers by 2037. ing, precision flow forming, 3D
ment to corporatize the Ordnance printing, etc. The industry needs
Factory Board (OFB) is expected Favorable policies to build high-quality machines
to encourage the entry of larger The Union and State govern- with high-quality workmanship,
private entities in defence manu- ments are lending ample support which also means employing
facturing, which may be a step in through friendly policies and a workforce with good quality
the right direction. The establish- space for investments. To pro- skill sets. India can stay in the
ment of industrial corridors in Ut- vide impetus to self-reliance in race only through investments
tar Pradesh and Tamil Nadu will defence manufacturing, many in technology and intense R&D.
foster defence manufacturing in announcements were made in It is a challenging and demand-
the medium to long run. the ‘Atmanirbhar Bharat Pack- ing journey but with the Gov-
The Indian Aerospace sector age’. In furtherance to this, the ernment and industry working
is growing significantly on the Ministry of Defence released the together, tangible results can be
back of the progress made by Defence Production and Export achieved and the vision of Make
the Defence and Civil Aviation Promotion Policy 2020 which in India and Atmanirbhar Bharat
sectors. We are witnessing an envisages achieving a turnover can be realized.

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