PM Modi makes strong pitch for 'Make in India' at Aero show

Modi said that the tax system should not discriminate against domestic manufacture in comparison to imports

Prime Minister Narendra Modi today called upon Indian industry and armed forces to develop own capabilities in defence manufacturing and stop reliance on imports.

"We dont just want to have assembly of imported equipment any more. We want transfer of technology here in India", Modi said.

After inaugurating Aero India 2015 at Yelahanka Air Force station in Bengaluru, he said the public sector defence undertakings should do much better and exploit their huge asset base and manpower to develop defence equipment and technologies.

"We must develop a financing system suited to the special needs of aerospace industry. It is a market where buyers are mainly governments, the capital investments are large and the risks are high. We must ensure that our tax system does not discriminate against domestic manufacture in comparison to imports, Modi said.

More broadly, he said the country's defence industry will succeed more if the manufacturing sector is transformed in India.

The country needs great infrastructure, sound business climate, clear investment policies, ease of doing business, stable and predictable tax regime, and easy access to inputs, he stated.

"We need a national industry that produces advanced materials, the most sophisticated electronics and the best engineering products. Over the last eight months, we have worked hard to create that environment for you, the prime miniater added..

Above all, there is a need for vast pool of highly skilled and qualified human resources for the defence industry, he said and added that the aerospace industry alone would need about 200,000 people in another ten years.

"We will set up special universities and skill development centres to cater to our defence industry, just as we have done in atomic energy and space. I have especially invited the State Governments to come here with package of facilities to attract investments in defence manufacturing" Modi added.