Modi said that earlier there was a mindset that India cannot do better in manufacturing, so only the service sector should be focused. Today we are also handling the service sector and making the manufacturing sector prosperous.
Modi said that the world’s fastest growing aviation sector is in India today. We are about to reach the top three countries in the world in terms of air traffic. In the coming 10-15 years, India will need more than 2000 passenger and cargo aircraft, India is already preparing to meet this demand. Modi said that this is also a message for the world. India’s manufacturing sector continues to have a growth momentum, despite disruptions in the supply chain, in spite of conditions created by the Corona and war. India is offering opportunity for low cost manufacturing and high income.
Defense and Aerospace sectors will be important pillars of self-reliant India
The PM said that in the coming days, the defense and aerospace sectors will be two important pillars of self-reliant India. We aim to cross $25 billion in defense manufacturing by 2025. Our defense exports will also increase to five billion dollars. In September last year, the Defense Ministry signed a contract with Spanish company Airbus for 56 C-295 aircraft. Out of a total of 56 aircraft, 16 aircraft will come from Spain in flyway condition, that is, they will be available to the Air Force in fully ready-to-fly condition. These will come between 23 September 2023 and 23 August 2025. The remaining 40 aircraft will be made by the Indian company Tata Consortium. These 40 aircraft will be built in India from September 2026 to August 2031. For the first time an Indian private company will make military aircraft. And this is the first time Airbus is making it outside Europe.
The Indian Air Force has been telling the need to replace the Avro aircraft for a long time. Avro transport aircraft were first inducted into the Air Force in 1960. The new C-295 aircraft will replace the Avro. The capacity of the transport aircraft C-295 received by the Airforce is 5-10 tonnes. It has a rear ramp door which allows quick reaction and is used for para drop of soldiers and cargo. 71 soldiers will be able to come in this transport aircraft. If we talk about paratroopers, then 44 paratroopers will be able to come together in this aircraft.
All these 56 aircraft will have indigenous Electronic Warfare Suite. This aircraft will also be able to take off from places where there are no proper runways. The type of terrain we have in our border, they are suitable for there.
The face of India’s defense industry will change
Tata has identified over 125 MSMEs from seven states who will supply different parts. This will also increase employment in the country. This will directly generate about 600 high-skilled jobs and more than 3000 indirect jobs. Around 240 engineers will be trained at an Airbus facility in Spain. This will also change the face of India’s defense industry. India has now joined the select group of countries including US, UK, France, Spain, Germany where private companies are making military aircraft. Till now, only defense PSU Hindustan Aeronautics Limited (HAL) manufactures military aircraft in India. This will give a new status to India’s defense industry and will increase the pace of Make in India in the defense sector. This is also important because aircraft manufacturing has so far been an elite group. The entry of India’s private industry in this will open many new avenues. India has been dreaming for a long time that India should become self-reliant in the defense sector. The central government is also continuously promoting it and is also promoting private industry and startups.
This aircraft can be used for civilian purpose apart from military purpose and it has been certified for passenger carrying and cargo. There is a huge market for military products including military aircraft. World military spending grew by 74% between 2001 and 2020 and was just under US$2 trillion in 2020. The military aircraft and aerospace manufacturing market has also grown rapidly. The global military aircraft and aerospace manufacturing market is estimated to be worth around US$ 255.8 billion in 2021.
Experts say that the kind of infrastructure needed to make military aerospace equipment or aircraft, a highly skilled labor force is needed and not every country can do the kind of investment required. The US, France, Germany were the largest aerospace exporters in the year 2020. During this period the US, China, India, Russia and the UK spent the most on the military.