Theme: Defence | Government should incentivise R&D investment in defence industry, says SIDM President Bhatia ahead of budget presentation

In this episode for the State of the Economy podcast, Dalip Singh talks to Rajinder Singh Bhatia, newly appointed President of Society of Indian Defence Manufacturers (SIDM), the apex body of Indian defence industry, about how the defence industry is poised to meet the service requirements for mainstay weapons and next-generation systems, along with the government's push for exports and expectations from budget 2024. The podcast begins with a discussion on the government's viewpoint toward the defence industry, emphasising its role as a crucial pillar for India's strategic self-reliance. Bhatia,  who is also Chairman, Defence Business, Kalyani Group, underscores the need for a comprehensive defence industrial base, combining the strengths of both the public and private sectors to achieve the goal of Atmanirbhar Bharat.  The conversation touches upon India's push for exports which is expected to touch Rs 20,000 crore in FY24 and for that Bhatia says the SIDM is going to set up an Export Promotion Council to facilitate that. He also informs that India is soon going to sign Security of Supply Arrangements (SOSA) with the United States of America, a step forward to get rid of regulatory hurdles for seeking access to their defence market and the strategic agreements required to integrate Indian companies into the global supply chain. The discussion also sheds light on the challenges and opportunities in European markets for defence exports. The conversation goes on to talk about the challenges faced by the Indian defence industry, exploring topics such as the need for self-reliance in core defence technology. Bhatia shares his views on the critical role of startups in the defence sector. The conversation also touches upon the funding challenges faced by startups and the ongoing efforts to streamline the acquisition process to reduce the induction time since futuristic weapons have lesser shelf life. Ahead of Interim Budget, he wishes the government should look into the fact that capital budget goes into addressing contractual liability and incentivises investment in R&D. The episode concludes over shifting global perception of India's military industrial capacity and capability.  ( Host: Dalip Singh, Producers: Amitha Rajkumar)