India’s defence strategic electronics pegged at Rs. 100,000 Cr

The requirement for combat systems and non-platform based defence strategic electronics for India is pegged at Rs. 100,000 crore for the five year period ending 2017.

It is expected that between 2016-25 defence contracts worth $75 billion are expected to come up in India, representing a potentially very large opportunity for the electronics industry.

The 8th edition of Electronic Industries Association of India (ELCINA)’s Strategic Electronics Summit 2017 was inaugurated by Dr V. K. Saraswat, Member, Niti Aayog; Sanjay Kumar Rakesh, Joint Secretary, MeitY, Government of India; and a host of dignitaries from the defence and strategic Electronics sector

Commending ELCINA on hosting the 8th edition of the Strategic Electronics Summit, Dr V K Saraswat said, “In our quest to get the best global technology, we end up importing ready products. This is detrimental to growing local capabilities as import is the easy way out.”

Citing the example of China and how they have progressed by absorbing technology from advanced countries Dr. Saraswat said that the benefits do not accrue to local Industry as they are discussed after the purchase contract is signed with the foreign defence OEM. This must be done before the deal is signed.

Dhirendra Singh, Chairman, DPP Committee, Government of India and other experts spell out opportunities and challenges for India’s Electronics sector under the Defence Procurement Procedure 2016; MSMEs express optimism for a level playing field in manufacturing opportunities to supply key strategic electronics components to the India aerospace and defence sector.

Speaking on the occasion, Sanjay Kumar Rakesh, Joint Secretary, MeitY, Government of India said that the major challenge is to chase the target of $400 billion demand for electronics in the next few years with zero imports.

We need to build trust between Industry and government through close interaction Mr Rakesh added.

The ‘Report of the Working Group on Defence Equipment’, estimates defence electronics of the size of Rs. 25,700 crore. This amounted to about 25% of the capital expenditure projections of the working group in FY2016-17.

Commenting on the industry readiness vis-a-vis the emerging market opportunity Rajoo Goel, Secretary General, ELCINA said, “With the announcement of DPP 2016 and the Strategic Partnership Programme (SPP) by the government, the Indian electronics industry stands to gain a lot in terms of value added manufacturing opportunities, skill upgradation and employment generation. Success however would depend on effective implementation of SPP and clear guidelines of engaging development partners who would largely be the MSMEs.”

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