Addressing the India-Russia Defence Industry Cooperation Conference, Singh said that the Indian government has been encouraging Original Equipment Manufacturers (OEMs) to partner with the Indian entities under its Make in India initiative.
"I would like to begin by underlining the importance we place in our make in India initiative. The government of India is encouraging Original Equipment Manufacturers to partner with Indian entities, making use of its initiatives. We have in place a set of clearly defined policies," Singh said.
"We (India and Russia) can jointly manufacture defence equipment and platform which will have a substantial opportunity for support to third countries," he added.
The Defence Minister said that the two countries can draw inspiration from the Inter-Governmental Agreement on Joint Manufacturing of Spares, Components, Aggregates and other material related to Russian or Soviet Origin Arms and Defence Equipment that was signed between India and Russia on September 4, 2019.
He said that the said agreement defines a broad framework of cooperation for the manufacturing of spares in India by way of collaboration between the Indian industry and the Russian OEMs.
The Defence Minister said that the Indian side will provide the orders for procurement of agreed quantities at a mutually decided price for a period of not less than five years. He expressed hope that the manufacturing under the agreement in India will lead to the reduction in cost and timelines of supplies, as well as progressive indigenisation of spares.
"Today's conference provides an opportunity to the chief executive Industrial representatives to plan for earlier realisation of the objectives of the inter-governmental agreement signed in Vladivostok," he said.
Singh said India will soon share the list of spares and items with Russian side that was proposed to be manufactured in India. He expressed hope that Russia would identify the OEMs in the next few months who can partner in the production of these spares.
Singh noted that India has taken significant economic reforms to improve the ease of doing business, and has implemented a single goods and services tax across the country. Additionally, the country has reduced its corporate tax significantly and set up two defence corridors in Uttar Pradesh and Tamil Nadu which offer an attractive term for investment in the defence manufacturing sector.
"Our government under the leadership of Prime Minister Narendra Modi has opened the defence sector and manufacturing to a great extent for foreign participation. We have implemented a single goods and services tax across the country which is the biggest tax reform since our independence," Singh said.