Defence, aerospace to offer $200 billion opportunity: VK Saraswat

Says about $30 bn of this pie will be available under the country's offset clause

The country needs to strengthen its technological prowess so that an advanced system or a product is not just manufactured but also can be designed here, VK Saraswat, former secretary - Defence R&D, said here today.

The collaborations between defence and the aerospace industry should ensure that the critical needs like designing are also met locally, he said while addressing a three-day Defence and Aerosupply India conference.

"We failed in the past as our collaborative developments were not intelligent. Mantra for success should be design and manufacture in India," he said while referring to Prime Minister Narendra Modi's Make in India slogan

Defence and aerospace sectors, including the civil aviation industry in India, would offer a $200 billion business opportunity for companies in the next 15 years and about $30 billion of this pie will be available under the country's offset clause, he said.

To improve the manufacturing capabilities, the defence PSUs will have to bring in modern manufacturing methods and competitiveness, he said. The government should play more of a facilitator's role to increase the role of the domestic private sector while bringing in corporate style functioning into the public sector defence establishments, according to him.

Of the total defence equipment, 40-47 per cent was procured domestically and the remaining comes from outside. The ratio should reverse in the coming years, he said.

The state government has said it would make defence and aerospace conferences an annual feature in Hyderabad, which houses a considerable number of defence and aerospace establishments along with a large base of SMEs working for them.