June 18, 2010 4:35:41 am
With the Defence Ministry poised to spend $80 billion on defence acquisitions over the next five years,India is already a major market for global defence companies. Now,a new defence industry report says India is not only one of the most attractive destinations for global defence companies but is fast becoming part of the global supply chain of some of the biggest defence suppliers in the world.
The CII-Deloitte report on Prospects for Global Defence Industry in Indian Defence Market,released in Paris on Thursday,lists out more than 40 joint ventures and partnerships that have been struck between international firms and major Indian defence players like Tata,Mahindra & Mahindra and L&T. The report says increasingly,global companies are realising Indias potential as a manufacturing hub in the aerospace and defence sector and are interested in creating partnerships.
India is being considered as the next destination of manufacturing given countrys strength like wider supplier base,low-cost manufacturing,persistent focus on infrastructure development,huge pool of skilled workforce and increased penchant for enhancing competitiveness by the respective firms. Hitherto Indian firms lacked the global competitiveness in engineering,quality and technology aspects in aeronautic and defence products. However lately there is an increasing thrust on these aspects, the report says.
Some of the biggest global defence players have already set shop in India to manufacture products for their international supply chain.
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