Indian Economy News

IOL signs a collaboration agreement with SAFRAN to manufacture two high-precision, combat-proven systems in India

A statement from the Indian Ordnance Limited (IOL) states that a collaboration contract has been negotiated with SAFRAN, the renowned worldwide supplier of aerospace and defence products, to produce two precision-made, combat-unaided systems within India. The objective of the collaboration is to improve domestic defence manufacturing capability as well as to encourage indigenous defence manufacturing efforts. As a result of this collaboration, both systems will be manufactured in India using appropriate technology and will take advantage of proven operational performance. The establishment of this collaboration reflects the priority given by the Government of India to support the development of Indian defence manufacturing capabilities and to reduce excessive reliance on foreign suppliers. 
According to the statement released from the partnership agreement between SAFRAN and IOL, both parties intend to assist in the transfer of technology, provide training opportunities for individuals working in the Indian Defence Industry, and grow the capability of India’s Defence Manufacturing Sector through collaboration. The collaborative effort demonstrates increased involvement between Indian manufacturers and foreign Original Equipment Manufacturers (OEMs) to achieve the Self-Reliance objectives regarding Defence Production in India. The creation of local factories producing advanced technologies will improve the capability and readiness of India’s military force and support the long-term viability of India’s Defence Capability. Additionally, the cooperative effort between SAFRAN and IOL also reaffirms the Indian Government’s objective of creating a viable Defence Industrial Base through the Promotion of Defence Industrial Partnerships in the Make in India Initiative. Therefore, the Partnership Agreement between IOL and SAFRAN is a significant step towards building an Indigenous Defence Manufacturing Sector and developing the Defence Industrial Base in India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.