Modi's "Buy India" Pledge: Indian Firms Bank On Defense


BANGALORE: The budget which was presented by the BJP government this year opened a 49 percent FDI inflow into defense and also increased the amount of money spent on defense, in order to check with the rise of the Chinese military strength and also to strengthen itself for potential neighboring enemies.

The PM on Independence Day called for a “Buy India” pledge urging Indian firms to come forward and manufacture Military Arms, guns, ammunitions, tanks and planes for the Indian Army. This window of opportunity saw an incredible response as many Indian Industrialist corps came forward taking the pledge into manufacturing various supplies for Indian Defense.

Big names like Larsen and Toubro, TATA industries and Mahindra group in Mumbai are all taking the opportunity in hopes of lucrative returns for this service. Larsen is investing $400 million into yard ships to manufacture ships for the navy; Mahindra group is expanding on making parts for planes, radar and armored vehicles.

"We really expect quicker implementation. There are signs that this government is very keen to grow indigenization and "The opportunity is huge," said M.V. Kotwal, president (Heavy Engineering) at Larsen and Toubro, one of India’s biggest industrial houses as reported by Reuters.

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