Pandemic has hit defence production: Rajnath
NEW DELHI: Defence minister Rajnath Singh on Thursday said the lockdown imposed to check the spread of Covid-19 has hit defence manufacturing harder than other sectors. He said it is because the government is the only buyer of the defence products.
Singh spoke about the hardships faced by the defence industry at an e-conclave. He said the lockdown has hit the manufacturing sector, disrupted supply chains while the defence industry has also been affected due to the strict confinement measures.
The Society of Indian Defence Manufacturers (SIDM), Confederation of Indian Industry (CII) and the department of defence production jointly organised SIDM MSME Conclave 2020.
Singh said the economic package and the reforms the Centre has announced to tide over the Covid-19 crisis and to give a push to Prime Minister Narendra Modi’s ‘Atmanirbhar Bharat Abhiyan (Self-Reliant India Movement)’ would strengthen the micro, small and medium enterprises (MSME) sector and generate employment.
He called MSMEs Indian economy’s backbone as they have accelerated gross domestic product growth, brought in valuable foreign exchange through exports and provided employment opportunities.
Singh said over 8,000 MSMEs were an integral part of the production process of the ordnance factories, defence public sector undertakings, dockyards and base repair depots, and their share equalled nearly 20% of the overall the production of these organisations.
“I am very happy to know that SIDM has accelerated the manufacturing of DRDO [Defence Research and Development Organisation] designed personal protective equipment kits, masks, ventilator parts…In less than two months, we have not only met our domestic demand, but we can also think of helping neighbouring countries...,” a defence ministry statement quoted Singh as saying.
Union finance minister Nirmala Sitharaman last week announced a series of measures to boost self-reliance in the defence sector, including an increase in foreign direct investment in defence manufacturing.