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EMERGING CONTOUR OF STRATEGIC PARTNERSHIP MODEL

The new Strategic Partnership Model will not just encourage production of critical defence equipment in the country, but will also reduce our huge dependence on defence imports. Furthermore, it will promote a healthy competition, empower Indian and foreign companies to work together and adapt their business models freely and allow private industry to realize a return on its investment.

India faces a significant shortage of critical defence equipment, including fighter aircraft, submarines and helicopters, which India's defence public sector undertakings (DPSUs) have been unable to address. The Strategic Partnerships model proposal envisages to harness strengths of private industry to create capacity and infrastructure for the selected defence segments over and above existing in the defence public sector units. Hence, there is a need for institutionalising a transparent, objective and functional mechanism to encourage broader participation of the private sector in defence manufacturing under the Make in India framework. The idea behind is simple, a foreign and Indian manufacturer would tie up to produce weapon system in India for the armed forces. Technology and knowhow would automatically be shared with the Indian companies building a defence manufacturing ecosystem in the country.

Segments Identified

The Strategic Partnership (SP) concept likely to start from four sectors as under:-

  • Single-engine Fighter Aircraft
  • Helicopters
  • Submarines
  • Armoured Fighting Vehicles

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