GLOBAL ARMS PRODUCERS ARE NOT INTERESTED TO ‘MAKE IN INDIA’
WORLD DEALERS MAKE MORE BY EXPORTING TO INDIA
2018-03-26 08:32
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There is nothing to be surprised if India has attracted a tiny Rs.1.17 crore ($180,000) as foreign direct investment (FDI) in defence production under the “Make in India” framework in the last four years. The reason is simple. India is the world’s largest arms importer. And, it may remain so for many years to come. Why should an arms manufacturer-exporter expand its production base to India to spend more, earn less and subject itself to plethora of local rules, regulations and inspections? This explains why the liberalisation of the FDI policy in defence failed to impress powerful foreign arms manufacturer-exporters to set up shops in India. China, India’s main military tormentor, is the world’s third largest defence power — after the USA and Russia — and the second largest in military spending, after the USA. China is continuously expanding its defence manufacturing capacity and increasingly arming India’s other border states such as Pakistan, Bangladesh, Nepal, Myanmar, Sri Lanka and even the small Maldives. Under the circumstances, India has little choice but to raise and update its weaponry through higher imports of sophisticated arms and weapons for its army, navy, air force and para-military services. Armament exporters to India are taking full advantage of the situation.