Press Release

Lack of competitiveness & transparency led to corruption in defence deals: Rajnath Singh

Date : Wednesday, December 14, 2016

Press Release Details

 Global cos. willing to invest, produce and transfer technology in India’s defence sector


There has been a spurt in cases of corruption in defence deals due to absence of competitiveness and transparency in the past, Union Home Minister, Mr Rajnath Singh said at an ASSOCHAM event held in New Delhi today.

“Though previous governments must have had the intention of making India self-reliant in defence sector but for some reasons they could not succeed,” said Mr Singh while inaugurating an ASSOCHAM conference on ‘Defence Production: Self reliance & beyond.’

“So far as purchase of defence equipment is concerned, I can say that compared to previous governments, the decisions are now being taken and implemented much faster,” he added.

He also said that global companies involved in production of defence equipment are willing to invest in India.

“I had been to Israel and China where I met the Prime Minister of Israel and senior member of Politburo who is in-charge of entire homeland security in China and both of them said that many of their companies intend to invest in India and produce defence equipment,” said the Union Home Minister.

“Many of these companies are also willing to transfer technology, this shows how India’s dignity has increased worldwide,” added Mr Singh.

He said that the Centre is incentivising the defence manufacturing companies that are coming to India. “We should further incentivise manufacturing of defence equipment and our government is taking major steps to promote competitiveness and bring in transparency in defence orders.”

Talking about the need for self-reliance in defence production, Mr Singh said, “Any country, if it wants to make itself safe both internally and externally cannot do so until it becomes self-reliant, as such we need to minimise our dependence on other countries for security and defence equipment.”

“I cannot understand that if we are capable of making ‘Mangalyaan,’ at a fraction of cost then why should we remain dependent on other countries for defence equipment,” he rued.

He also hoped that if India could achieve self reliance in defence equipment manufacturing it could rank among top three economies in the world.

He said that in past two years, under the ‘Make in India,’ initiative, the central government has been giving significant push to manufacturing and engineering research and development (R&D) which has helped the country in emerging as an international hub for major companies in the world.

Quoting an example of Tejas – a light combat aircraft, which was totally an indigenous production, the Union Home Minister said, “In the defence sector, under the ‘Make in India,’ initiative, we are promoting indigenous defence production and our government intends to give a rapid thrust to this sector.”