Why this is important to Wisconsin businesses: But prospects continue to grow for collaborations with U.S. defense suppliers.
India’s government has released a list of nearly 1,000 military items that will have to be produced domestically, rather than imported, in a process to be phased in between December 2023 and December 2029. The list includes components used in military aircraft, battleships, and numerous types of ammunition. In particular, the rule targets specific parts for fighter jets, firefighting systems on warships, and gas turbine generators as equipment that should be produced by local manufacturers.
It is the government’s fourth series of defense items that are to be made in India instead of imported. The effort will involve collaborating with academic and research institutions on the product designs and using small and midsize private companies in the manufacturing process.
India is the world’s top arms importer but its imports from 2018-22 were 11% lower than during the previous five-year period, according to a March report by the Swedish think tank Stockholm International Peace Research Institute. Russia, France, and the U.S. are India’s biggest suppliers.
India plans to increase its own defense production from $12 billion to $22 billion by 2025. It will also provide separate funding for research and development by private companies. The government is encouraging collaboration with international companies as a way to help achieve self-reliance in defense production.
Wisconsin companies interested in exploring opportunities in the defense sector may consider joint venture and licensing possibilities. Manufacturers and suppliers in India are interested in developing partnerships with U.S. businesses to share new technologies.
With India’s status as a major defense partner of the U.S. and strengthening ties between the two countries, collaboration on defense parts and materials is expected to grow in the coming years.
