BANGALORE: India is the largest arms importer in the world. Therefore, India’s biggest companies are investing billions of dollars into manufacturing arm and related equipments such as guns, ships and tanks. This move is taken by the new government’s commitment to upgrade its armed forces using domestic factories.
Referring to increasing domestic production, MV Kotwal, president at Larsen and Toubro said, "The opportunity is huge, we really expect quicker implementation. There are signs that this government is very keen to grow indigenisation," reports The Economic Times.
Larsen is expected to push $400 million in the formation of ships for the navy, on the other hand Mahindra group is upto building plane-parts including for the air force, the investments also include in for armoured vehicle and radar production. The critics of indigenisation are debating on producing gears for the lumbering state sector as they find it more costly than importing the goods from abroad and indicating the risks involved towards corrupt dealings within the country.
Some companies are unconvinced from the government's promise to grow the private market in reference to the New Delhi's history of long delays and order cancellations.
On launching a new, India-built naval destroyer, Modi said, "My government has taken important steps in improving indigenous defence technology, we can guarantee peace if our military is modernized," reports ET.