"Many of the defense platforms, particularly Russian platforms made in India under license production, have very high import content, because these components are sub-systems and are still imported. We need to review this trend and increase the indigenous content of our defense capital procurement," Jaitley said.
As most of India's defense equipment and inventory is of Russian origin, Russian companies would have the comparative advantage in partnering with Indian companies.
"We are one of the largest importers of military hardware; this is not a label we are happy with. Make in India in defense aimed at not only domestic needs but for Indian companies to be part of the global supply chain. I think there is tremendous scope for collaboration so that they are part of a global supply chain," said Jaitley.
"It will be still better if Russia transfers the technology for indigenous production. It will further reduce the uncertainty associated with import from Russia, apart from promoting manufacturing in India, even if it will be of spares," said Amit Cowshish, former financial advisor to the Defense Ministry.
India is also hopeful of becoming a member of the Wassenaar export control regime soon which will allow access to technologies that can be used for both civil and military purposes. "Joining the Wassenaar agreement will integrate India with the global efforts for non-proliferation and facilitate India's defense trade," said Cowshish.
