Centre for greater role of SMEs in defence electronics

The government is committed to encouraging the involvement of the private sector in defence, especially in the strategic electronics space, said Union Minister of State for Defence M M Pallam Raju here. He also added, this should bolster the indigenisation of defence technologies and help increase the role of SMEs and also help face any external threat.

Speaking to reporters on the sidelines of the 3rd Strategic Electronics Summit of the Defence and Aerospace organised by India Semiconductor Association (ISA) in Bangalore on Thursday, he said the internal security situation of the country needed much more attention as the threats were more serious than perceived.

 

“More importantly, the danger India may face after foreign forces withdraw from Afghanistan; the unresolved border dispute with China and constant needling by Pakistan from across the border calls for a strong defence capability,” he said. He said, the present internal security situation is not helping the country and is a big deterrence to its progress while the country needs full deterrent capability to counter external threats. “If the strategic electronics sector develops niche technologies on (a) par with the West, then this is possible. All modern warfare systems depend on electronics system and development of strategic electronics is extremely important for the country,” he said. Raju said, the government is committed to helping the small and medium (SME) industries in having a greater participation in developing defence technologies as well as projects under off-set clause.

Further, he said, it will help SMEs to sustain themselves in the harsh environment where there is special emphasis on quality and delivery, he said.

Raju said, the threats from cyberspace is another big problem the country is facing as its government departments were vulnerable to hacking and attacks through malwares.

“We have to prepare ourselves to face all such threats. It is important the private sector make the country a hub of hardware manufacturing as well.” “It is important we build our own domestic industrial base in hardware and also to ensure there is no breach of security in cyberspace,” he added. He also said that modernisation plans, coupled with an “extraordinary budget allocation” in the defence sector has fuelled growth in the country’s electronics industry. It is projected to cross Rs 10,000 crore during the present year, Raju said.

The Indian electronics industry has shown an upward trend during the 11th Plan, growing from Rs 5,400 crore in 2007-2008 to Rs 7,948 crore in 2011-12 and is projected to cross Rs 10,000 crore during the present year, he said. “Modernisation plans of the defence forces, coupled with an extraordinary budget allocation for the defence sector are fuelling this growth,” he said. It is estimated that the defence electronics purchases will be about Rs 6,00,000 crore in the next ten years.