India needs to work on challenges of defence manufacturing sector: Experts

India needs to strengthen its vendor base to fulfill its 'Make in India' dream for defence sector, felt experts at the Defence Conclave organised by CII

While both government and industry are keen to develop defence manufacturing in India as part of 'Make in India' concept, they would have to work on challenges the industry facing at the moment. Moreover, defence sector leaders also believe that vendor development has to be focussed on.

In order to decrease our dependence on others for defence manufacturing, India needs to strengthen its vendor base to fulfill its 'Make in India' dream for defence sector, felt experts at the Defence Conclave organised by Confederation of Indian Industry (CII) in Ahmedabad.

Defence industry is going through a change and with its huge potential it is on its way of acquiring a global stature. There are several challenges that industry and government together need to resolve to make strong country's defence industry, experts at the forum said.

Prashant Amin, executive director of Elecon Engineering Company Limited said: "Finance is the biggest issue with the small industries. While you are going to do something new, it needs funds which is not easily available for MSMEs and we have to work out on it."

Further, as research and development (R&D) is necessary for the defence manufacturing sector, the industry needs to work on it, said experts. Moreover Industry would have to channelise supply chain management as most of the players outsource the components from MSMEs. Vendor development programs will strengthen the industry.

Shikha Gupta, general manager - strategic planning, Bharat Electronics Limited said, "While most of the component manufacturing is outsourced to the MSMEs, we have to focus on vendor development. With this R&D is also most important part to serve better to the defence sector of the country."

"Capability can be develop in MSMEs and for that we need to create proper ecosystem. It will take some time as it is new for Indian industry. gradually we will be able to reduce our dependency on overseas suppliers", said Sanjay Kirloskar, chairman and managing director of Kirloskar Brothers Limited.

Devanshu Gandhi, chairman, CII Gujarat state council and managing director of Vadilal Industries, "The Government at the centre has granted 22 licenses to Gujarat since 2014 for defence manufacturing. With the ministry of defence trying to maximise sourcing all equipment from the Indian companies-public and private sector by 2020, it is imperative that the industry should utilise this opportunity."