Expo to help MSMEs foray into defence sector
Hyderabad, March 11 (INN): A mega Defence and Aerospace Exhibition, organized by the National Small Industries Corporation and Federation of Indian Micro, Small and Medium Enterprises to help MSMEs capture a larger share of market which has been opened up by the Indian Defence sector was inaugurated at NSIC, ECIL, Kushaiguda in the city on Friday.
Delivering the keynote address after inaugurating the Exhibition, Ministry of Small and Medium Enterprises Secretary Uday Kumar Varma pointed out that India is the 10th largest defence buyer in the world, with an estimated 2.5 percent share of global defence expenditure and the exhibition would help the MSMEs foray into the defence sector. Mr Varma said that India's current defence expenditure was in the range of US $32 billion and the expenditure was set to rise to an estimated $42 billion by 2015.
Recognising the immense potential of huge market for defence equipment, the government has liberalized defence industry and opened to private sector with participation up to 100 percent in 2001, Mr Varma pointed out. The Indian manufacturers and suppliers of goods and services for the defence, aerospace and homemland security are to be the main beneficiaries of the government support policies of 'buy-local', taxation arrangements that put local firms at an advantage and the offset policies of the government announced recently, he stated.
Mr Varma pointed out that the government has also invited foreign direct investment up to 26 percent in the sector. Stating that 5,000 companies playing key role in the sector, he said the government has set a target for procuring 70 pc its defence requirements from indigenous sources. He also lauded the MSMEs for providing a platform to exhibit their capabilities in the field of defence equipments and products.
FISME president Mohan Suresh gave welcome address. NSIC Chairman and Managing Director Dr H P Kumar and Lockheed Martin India Senior Director Jagmohan Singh also spoke on the occasion.
News Posted: 11 March, 2011
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