Mumbai: Russia and India agreed on Wednesday to work on military projects, in what marks the second time in a week that Moscow has offered collaboration in the area of defence to a major regional power.
During an official visit to the Russian Federation on September4-5, 2019 on the invitation of President of the Russian Federation H.E. Mr Vladimir Putin in 20th India – Russia Annual Summit in Vladivostok the joint statement said, “include establishing joint development and production of military equipment, spare parts, and components as well as improving the system of after-sales services.”
The government has been encouraging the Original Equipment Manufacturers (OEMs) to partner with the Indian entities under its Make in India initiative. While addressing the conference Singh said, “I would like to begin by underlining the importance we place in our make in India initiative. The government of India is encouraging Original Equipment Manufacturers to partner with Indian entities, making use of its initiatives. We have in place a set of clearly defined policies.”
The defence minister also claimed that there will be an inspiration for two countries through Intergovernmental Agreement on Joint Manufacturing of Spares, Components, Aggregates and other material related to Russian or Soviet Origin Arms and Defence Equipment that was signed between India and Russia on September 4, 2019.
As per this agreement, there will be the manufacturing of spares In India through the collaboration with the Russian OEM industry. There will be orders with certain agreed quantities at Mutually decided price and the period will not be less than five years.
Singh also expressed hope that it will reduce the cost and the time of the products and supplies and will also make a big step towards India’s aim to become the third-largest aim of exporting third in the world. “Today’s conference provides an opportunity to the chief executive Industrial representatives to plan for earlier realization of the objectives of the inter-governmental agreement signed in Vladivostok,” Singh said.
He expressed hope that Russia would identify the OEMs in the next few months who can partner in the production of these spares.
The country had already reduced its tax and set up two defence corridors in Uttar Pradesh and Tamil Nadu which offer an attractive term for investment in the defence manufacturing sector.
“Our government under the leadership of Prime Minister Narendra Modi has opened the defence sector and manufacturing to a great extent for foreign participation. We have implemented a single goods and services tax across the country which is the biggest tax reform since our independence,” Singh said.