Strategic partnership model for defence manufacturing gets cabinet approval

The Union Cabinet has approved the much-awaited strategic partnership model which will allow local private sector companies to form manufacturing joint ventures with foreign defence equipment makers—a shot in the arm for the government’s ‘Make in India’ programme as well as efforts by the Indian private sector to make inroads into the lucrative defence equipment business. “The capacity building of the private sector in defence (equipment) manufacturing will begin now,” finance and defence minister Arun Jaitley said after the Cabinet meeting. The Indian defence industry is currently dominated by state-owned manufacturers, including HAL.