February 19, 2002

'33'

    Following is the full text of the speech delivered by the Defence Minister Shri George Fernandes at the inauguration of Defexpo – India 2002 here today :-

    Distinguished guests and friends,

    A hearty welcome to all of you to DEFEXPO-India 2002, the second exhibition on land and naval systems being organized by the Confederation of Indian Industry (CII) in association with the Ministry of Defence. I extend a special welcome to our distinguished guests and delegates, many of whom have traveled long distances to be with us this morning. We are honoured that you have accepted our invitation, and I trust that your visit will be pleasant and professionally productive.

    DEFEXPO – India 2002 is our endeavour to showcase India’s technological capabilities in land and naval systems. Our defence infrastructure has been driven primarily by a concern for autonomy and indigenisation. We do, however, recognize the inevitability of technological interdependence in today’s world, and we have forged mutually beneficial arrangements in respect of a wide range of products and services with several friendly countries.

    India’s defence production industry made its beginning in 1801 when the first ordnance factory was established at Cossipore near Calcutta, and this year we celebrate its bi-centenary. We now have 39 Ordnance factories and eight defence public sector undertakings, whose combined sales last year amounted to US$2,650 million (Rs.12,714 crore), besides a number of big and small units in the private sector. While the ordnance factories are playing a vital role in equipping our armed forces with weapons, ammunitions, armoured vehicles, transport vehicles, clothing and general stores, the defence public sector companies have a product range encompassing aircraft, warships, missiles, radars, communication systems, electronic equipment, special vehicles, super alloys and special metallurgical products. Production in the defence sector undergoes stringent inspection by our quality assurance organisations and our products and services are of international quality.

    The defence industry has now been opened up for Indian private sector participation, with Foreign Direct Investment (FDI) permissible upto 26%, both subject to licensing. With Indian infrastructure for production, research & development in defence having grown over the years, our attention is now being focused on shifting from being recipients of technology through ToT, to being partners in developing new products. Our vision is to create in India a defence industrial base capable of producing world-class products, at highly competitive prices. These changes are also in line with the liberalized economic policies of the Government of India, which are rooted in ever-expanding globalization of the economy.

    We are very happy that a number of companies from several countries have joined us at this exhibition. Their participation in recognition of the market potential in India for their products and technologies even as it shows an awareness of the opportunities India offers for joint ventures, technology transfers and co-production facilities for export to other markets. We shall make available the results of Indian R&D in defence to such joint ventures as may be interested in it. We are also open to collaborative research and desire that private sector companies take advantage of our research facilities.

    We believe that given the synergy between the public and private sectors, the large domestic market and the export potential in our neighbourhood and also globally, we should soon be manufacturing several world class products.

    The small-scale industry plays not a small role in defence industry. Many of the critical parts of strategic weaponry is produced by the small scale sector. In India this sector has a large presence. It gives us great satisfaction that the small-scale industries are participating in this exhibition in a significant manner.

    The CII is using the occasion of this exposition to organize a special meet entitled ‘DEFENCE-INDUSTRY SUMMIT’. This Summit is meant to inform participant of the existing infrastructure of our Defence Industry and the opportunities for private sector participation in defence production, against the backdrop of the emerging trends in the Defence Industry at the global level, and the needs of our own Armed Forces. I am sure this interaction will be very stimulating and will throw up new ideas for us to act upon.

    Organizing of DEFEXPO – India 2002, by the Confederation of Indian industry in association with the Ministry of Defence, is an indicator of the increasing interface between government and industry. I compliment the CII for taking a lead in organizing this exhibition and thank every agency and every person who has played a role in this effort.

    Let me once again extend a warm welcome to our distinguished guests, exhibitors, Summit delegates and all the participants in this important event and wish you a pleasant and fruitful stay in this historic city.

    As I declare DEFEXPO – India 2002 open, I would also like to announce that the third DEFEXPO – India would be held from 4-7 February 2004, at this very location. We look forward to welcome you and many others to that event as well.