More and more Indian steel manufacturers are foraying into the defence manufacturing sector. Essar Steel, for example, is the first Indian bigwig to supply special-grade steel to support operations for land and naval defence system of the country. Besides, Jindal Stainless Steel recently announced that it’s going to provide steel for India’s defence use under an agreement signed with Defence Research & Development Organisation (DRDO).
In the last few years, India’s defence industry has seen more players, like Essar and Jindal getting into the gameplay, contributing to the exponential growth share of the country. As a result, the stakes became pretty high. One estimate even points that the expected expenditure incurred by the defence sector is likely to cross $200 billion mark in the next five years.
The revised Defence Procurement Policy 2016 supports Prime Minister Narendra Modi’s ‘Make in India’ campaign in its entirety; for that, the indigenous production of defence equipment and spare parts has increased manifold. The crux of ‘Make in India’ policy is to pull up indigenous manufacturing to 70% – against the existing 40%.
Previously, the Indian defence industry was solely a near-monopoly kind of sector where no private players were allowed or to be seen. A few public sector units were seen lurking around. Of late, under the guidance of PM Modi, things started to change – several private groups, including Reliance Industries Ltd., Tata Group, Hinduja Group, Mahindra Group and Adani Group are all now a big part in the defence game boosting indigenous steel production.
Moreover, the numbers have started to speak. In between Jan’01 and Feb’16, almost 333 industrial licenses were granted to private players by the Commerce Ministry for defence-related manufacturing. The statistic courtesy goes to the Department of Industrial Policy and Promotion. Although India is still one of the biggest importers of arms in the world, the initiative to support indigenous manufacturing of defence products is likely to bring down its heavy dependence on imports alone.
Moreover, apart from supporting escalating domestic demand, the products, manufactured by private Indian companies boast of substantial export potential too. This will not only save foreign exchange on behalf of the country but will also bring forth self-reliance and self-sufficiency and position India as one of the key exporters of defence goods in the world.
Now, talking of the Indian steel industry, there are many up and coming companies which are wreaking havoc with their cutting-edge products. One of them is MSP Steel – driven by innovation, motivation and technology, this steel manufacturer offers a wide range of good quality TMT bars, billet, pellets, ferroalloys and captive power.