defense manufacturing in india: powering up india s defense manufacturing blog by raksha mantri rajnath singh : India will become a hub of defense manufacturing! Results of revolutionary reforms will be visible soon

Rajnath Singh
It takes rocky perseverance and courage to start a major improvement and make it through. Changing the status quo while meeting the competitive aspirations of the stakeholders requires fine balance. However, under the able guidance of Prime Minister Narendra Modi, our government never hesitates to take tough decisions. The government has made reforms keeping in view the long term interests of the country.

Strength to Defense Sector
Self-reliance in the defense sector has been the cornerstone of India’s Defense Production Policy. The recent call for ‘Self-reliant India’ has further clarified the realization of this goal. The Indian defense industry has been largely confined to the needs of the Armed Forces. With the recent success on the export front, India seems to be ready to recognize its potential to emerge as a defense manufacturing hub. Our goal is to take India to the top countries of the world in the defense sector.

Since 2014, the government has made several reforms related to defense to create a suitable ecosystem for export and FDI and boost the demand for indigenous products. The decision to convert the Ordnance Factory Board (OFB) under the Ministry of Defense into seven new 100 percent state-owned corporate companies is historic. It aims to empower autonomy, efficiency, innovation and growth.

Ordnance Factories has a proud history of more than 200 years. He has a great contribution to national security. Their infrastructure and skilled human resources are important strategic capital for the country. However, over the past few decades, the Armed Forces have expressed concern over high prices of OFB products, lack of consistency in quality and delay in supply.

There were many flaws in the existing system of the Ordnance Factory Board (OFB). The thought that everything would be made in ordnance factories resulted in the shrinking of the supply chain. The feeling of becoming competitive and looking for new opportunities, new possibilities in the market decreased. The expertise culminated in the large range of products under one roof ordnance factory board.

7 new companies

The decision to convert the Ordnance Factory Board into seven new corporate entities is in line with the business governance model. The new framework will give impetus to these companies to become competitive. Ordnance factories will become fertile and profitable capital through optimum utilization of resources. The product range will deepen the imprint of expertise, enhance the competitive spirit through quality and cost-effective production, and align with the new era of innovation and design thinking.

The important thing is that while implementing this decision, the government has assured that the interests of the employees will be protected. These 7 new companies have also started their work. The main job of Munitions India Limited is to manufacture ammunition and explosives of different capacities. It has immense potential to move forward not only through ‘Make in India’ but also ‘Building for the world’.

Armored vehicles company AVANI’s job is to manufacture combat vehicles like tanks, anti-mine vehicles. It is expected to increase its domestic market share through better utilization of its capabilities and open up new export markets.

The main business of Advanced Weapons and Equipment (AWE India) is the production of guns, guns and other weapon systems. It is expected to increase its share in the domestic market through diversification of products along with meeting the domestic demand. The remaining 4 companies also have similar goals.

The government has also assured that most of these new companies have enough work. The pending orders of the Ordnance Factory Board have been converted into contracts worth over Rs 65,000 crore for these companies.

Flying high
The beginning is over. Earlier, Ordnance Factories were directed to cater only to the needs of the Armed Forces, but new companies will look beyond this and explore new opportunities in India as well as abroad. These new companies will be able to develop modern business models and coordination due to increased financial autonomy along with functioning.

These new companies as well as existing public sector companies will work step by step with the private sector to build a strong military industrial ecosystem in the country. This will help us in planning for minimizing imports and developing indigenous capabilities. If this is successful, then our economy will not only attract investment, but new employment opportunities will also be created.

(Hindi translation of Defense Minister Rajnath Singh’s article published in our partner newspaper Times of India)