With an aim to push indigenous and local material and software as part of the ‘Atmanirbhar Bharat’ initiative, the Union government announced a slew of measures taking the vision of the draft defence procurement policy even further. ET Now spoke to R Madhavan CMD, Hindustan Aeronautics about the government’s initiatives and gauging the impact of the lockdown on the company.
Hailing the government’s moves as extremely positive, Madhavan said raising the sectoral cap of foreign direct investment (FDI) (automatic approval) from the existing 49 per cent to 74 per cent and a negative list for the import of defence equipment in India were major steps in the right direction. “India has become an attractive destination on the defence front. A negative list of imported weapons will allow Indian products to be used more in the defence sector. Opening FDI should look to bring new technology along with manufacturing,” he said.
Alluding to a constraint in operations due to the lockdown, Madhavan said that although HAL has restarted operations in April after losing some production in lockdown, the domestic and international supply chains were impacted due to lockdown