Companies like Samtel Avionics cheer Narendra Modi government's boost for defence gear

BENGALURU: Indian aerospace and defence entrepreneurs are riding a wave of optimism as the Narendra Modi government lifts the shackles on direct foreign investment in the sector at a time when demand is growing for products and services that are “Made in India“.

Indian firms can receive overseas investment of up to 49% with the option to seek Cabinet approval for even 100% direct foreign investment in critical technology areas.“It was surprise to us that process took just two months, unlike in the past when we had to wait for one year,“ said Aravind Melligeri, chief executive of Aequs whose firm has bagged a $50-million (Rs 312 crore ) order from Germany-based Premium Aerotec.

“We have grown more than three times with the support of the new government,“ he said.The easing of regulations has drawn the attention of conglomerates that have hitherto stayed away from the sector. “As you know, we didn't have a footprint in India's defence landscape. But we are now ready to change that in a big way,“ said Anil Ambani, chairman of Reliance Group.

Ambani who was present at Aero India 2015, said he was keen to participate in the prime minister's `Make in India' initiative.Several entrepreneurs said support for the development of technology within India by the government will help spur local manufacturing, as in the case of Samtel Avionics, which is talking to the Indian Air Force and the Ministry of Defence for projects in domains such as optronics and sensors.

“If the government can support us with 80% funding to grow this capability in India, we are keen to put in the balance 20% for the indigenous development of this technology ,“ said Puneet Kaura, executive director at Samtel Avionics.