India on Saturday finalised a policy that would allow local private companies to work with foreign players to make high-tech defence equipment, in a boost to Prime Minister Narendra Modi's bid to cut reliance on imports.

The policy, whose finer details are still to be formalised, will initially allow the entry of private companies into the manufacture of submarines, fighter aircrafts and armoured vehicles through foreign partnerships, a statement issued by the Defence Ministry said.

"In future, additional segments will be added," the statement said.

Industry experts have said that delays in finalising procurement policies have undermined India's efforts to get local, largely inexperienced, companies to tie up with foreign manufacturers, a necessary step if domestic firms are to utilise the latest technology.

Prime Minister Modi has vowed to reverse India's dependence on imports by building a local manufacturing industry. The government is forecast to spend $250 billion on modernisation of its armed forces over the next decade.

The policy, announced on Saturday, would allow Indian companies to partner with global defence majors "to seek technology transfers and manufacturing know-how to set up domestic manufacturing infrastructure and supply chains," the statement said.

Foreign manufacturers such as Lockheed Martin, Boeing, BAE Systems and Saab are looking to India as one of the biggest sources of future growth.

Opinion

Editorial

Nuclear miscalculations
26 Jan, 2023

Nuclear miscalculations

IF the claim of former US secretary of state Mike Pompeo, that Pakistan and India came close to a nuclear exchange...
Exchange rate cap
26 Jan, 2023

Exchange rate cap

THE ‘management’ of the exchange rate by the State Bank, allegedly at the behest of the government, to ward off...
Fawad’s arrest
Updated 26 Jan, 2023

Fawad’s arrest

Does the state really need to fan public discontent in a period as fraught with uncertainty as this?
The rot within
25 Jan, 2023

The rot within

EVEN by the abysmal standards of our broken legal system, the acquittal of former SSP Rao Anwar and his 17...
Into darkness
Updated 25 Jan, 2023

Into darkness

The energy transmission infrastructure needs to be treated with more seriousness and its weaknesses removed.
Monetary policy
25 Jan, 2023

Monetary policy

THE State Bank’s decision to hike its key policy rate to a 25-year high of 17pc to anchor inflation expectations ...