With the government announcing opening up of the defence industry for Indian private sector participation with foreign direct investment (FDI) permissible upto 26%, subject to licensing, the country looks forward to a new era of self-sufficiency in this sector.

Inaugurating the second Defexpo India-2002 in New Delhi from February 19-23 last organised by the Confederation of Indian Industry (CII) in association with Ministry of Defence, Defence Minister,
Mr George Fernandes said : "Our vision is to create in India a defence industrial base capable of producing world class products at highly competitive prices". He also stated that the new policies are in line with the liberalised economic policies of the Government of India which are rooted in ever-expanding globalisation of the economy.

The participation of more than 140 companies from nearly 20 countries at the second land and naval exhibition was an indicator of the market potential in India for products and technologies in the defence sector. Another emerging trend highlighted by Mr Fernandes was the awareness of opportunities for the joint ventures and technology transfer and co-production facilities for export of the Indian products to other markets of the world. He further said that the results of Indian R&D in defence would be made available to such joint ventures.In an optimistic note, the Defence Minister added that India would soon be manufacturing several world class products given the synergy between public and private sectors, the large domestic market and the export potential in neighbourhood and other countries.

The large presence of small scale industries in India was also taken note of by Mr Fernandes. He said that many critical parts of strategic weaponry were produced by small scale sector. There was a significant presence of this sector in the Defexpo India - 2002.

Addressing the participants, Mr Subir Dutta, Secretary, Defence Production and Supplies said Defexpo India-2002 showcased all aspects of defence technologies available in India as well as a wide spectrum of land and naval systems manufactured by leading manufacturers of the world. Such exhibitions provide opportunity for enhancing technological expertise and exports by greater involvement of the private sector, he added.

A ‘Defence-Industry Summit’ was also organised on the occasion by CII to inform participants about the existing infrastructure of India’s defence industry and opportunities for private sector’s participation in defence production in the changing scenario. Besides high-level officials and business delegates, the inauguration was attended by Mr Harin Pathak, Minister of State for Defence Production & Supplies, Mr UV Krishnam Raju, Minister of State for Defence, Mr Yogendra Narain, Defence Secretary and Mr VK Aatre, Scientific Adviser to Defence Minister.