Speaking to reporters in the City, the minister said the offset provision in contracts could be a great opportunity not only to establish a long-term association with the supply chain and fulfils the offset obligation but also to create an opportunity to address the global market needs.
He was in the capital to attend high-level meeting of American defence buyers, suppliers with various Indian aerospace companies, organised by the American Chamber of Commerce in India.
Global practices
Referring to the highly-debated defence offset policy, he said the government would continue to incorporate changes in the policy to accommodate global practices. India and the US should work to co-develop a roadmap to develop defence products, ventures and strategic alliance so that together they can be a force to reckon with in the global economy, he said.
“There are no doubts on the ability of our State-run companies. However, if they do not act in time and be ready to face situations in the current scenario, the private sectors can snatch their share,” Pallam Raju said at the meeting.
This is the second time in less than two months that the minister is giving the defence PSUs a “wake up call.” He had recently in an army event said that the PSUs must wake up and get out of the comfort zones that they have in for long now.
He emphasised that India and the US need to focus on areas of mutual interest through industry interactions, joint developments, enhancing training and simplification of procedures from both ends.
The minister said the defence deals being negotiated will not only help India in terms of business but will also enhance the country’s ability in defence technology.
