Forbes India 15th Anniversary Special

Cost of defence acquisition can be reduced by 25%: Manohar Parrikar

Union Defence Minister says Make in India in defence would be the government's first priority

Shutapa Paul
Published: Feb 15, 2016 05:23:07 PM IST
Updated: Feb 15, 2016 06:18:00 PM IST
Cost of defence acquisition can be reduced by 25%: Manohar Parrikar
Image: Joshua Navalkar
India's defence minister Manohar Parrikar speaks at a session at the ongoing Make in India Week, in Mumbai

Greater transparency in bidding process brought in by the BJP-led NDA government has reduced corruption, Union Defence Minister Manohar Parrikar said on Monday at the ongoing Make in India Week in Mumbai.
The minister added that “clean systems” and lack of corruption could help slash the cost of defence acquisition by 25 percent.
India, the world’s largest importer of weapons, will place top priority to indigenously produce arms in India, Parrikar said.
While answering Forbes India’s query on lack of intellectual property rights on defence products impeding, he said that the Make in India programme would settle for partial technology transfer where high technology was involved. “Some technologies will not be transferred because of its high technology involvement. In such cases the Make in India programme will restrict itself to making the product in India and partial tech transfer,” said Parrikar.
India accounted for 15 percent of the volume global arms imports in the last five years.

Make in India in defence would also address the issues of unemployment and underemployment in India while proving to be a significant job creator, said the minister. The government claims to have removed all procedural bottlenecks. “There is not a single offset proposal pending with the ministry right now,” said Parrikar.
The government is also betting on halving India’s defence import bill by producing at least 50 percent of defence products indigenously.
“While we export some products, global supply chain cannot be disrupted but more than 50% will be indigenously produced,” said Parrikar.

Read more stories from Make in India Week 2016, Mumbai