SME Times is powered by   
Search News
Just in:   • Oil prices rises after sharp declines  • Exports growth continues to recede: FIEO chief  • Financial distress in India's thermal power sector  • World Entrepreneurs' Day on Tuesday, Aug 21  • China lodges protest over Pentagon report on planned strikes 
Last updated: 28 May, 2018  

Tank.9.Thmb.jpg Govt should incentivise pvt defence manufacturers: Study

Tank.9.jpg
   Top Stories
» Exports growth continues to recede: FIEO chief
» World Entrepreneurs' Day on Tuesday, Aug 21
» Rupee closes below the 70-mark, exporters may benefit: Experts
» Forex reserves plunges by over $1.80 bn on rupee crisis
» 'Unorganised food processing sector majorly populated by SMEs'
SME Times News Bureau | 28 May, 2018

A new ASSOCHAM-KPMG joint study suggested that the government should incentivise private enterprises to push the defence manufacturing sector.

The study titled, 'Creating a level playing field to facilitate Make in India in defence,' jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and global professional services firm KPMG, said the government to incentivise private enterprises for developing large scale research and development (R&D) and manufacturing capabilities.

India's gross defence budget is expected to reach US$ 112 billion (bn) by FY27 from $45 bn announced by the Government of India in 2018-19, owing to significant steps been taken by the Centre to bolster country’s position as a major aerospace and defence power, noted the study.

It also noted that while in 2018-19 the budgetary increase was a meagre 7.8 per cent over the previous year, it is expected to clock an estimated compound annual growth rate (CAGR) of about 11 per cent until FY27.

The study however raised concerns that about 10 per cent of defence budget is surrendered to Ministry of Defence (MoD) at the end of each financial year owing to underutilisation as the reserved budget is not mapped with capital acquisition.

It said that country's capital expenditure for defence procurement is expected to exceed $250 bn over the next 10 years, primarily to replace the Soviet-era vintage equipment and meet the growing modernisation needs of Indian Armed Forces. However, out of this the domestic industry would only be able to manufacture defence equipment worth just about $80 bn while rest of it would have to be imported.

It said that a vibrant domestic manufacturing ecosystem that includes both public and private defence manufacturing entities is essential for success of 'Make in India' in the defence sector.

 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 20 Aug, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(5)
» Niryat Mitra, a well thought-out app(2)
» Export Promotion Councils should work for promotion of GI Products: Prabhu(1)
» Indian cement industry – opportunities and challenges(1)
» Audi CEO to remain in German police custody(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter