• Friday, April 19, 2024

Business

India inks defence deals worth £3.7b for missiles, aero-engines

Visitors walk past a model of Indias Brahmos supersonic cruise missile displayed at the Defence Expo 2022 in Gandhinagar in the western Indian state of Gujarat on October 18, 2022. (Photo by SAM PANTHAKY/AFP via Getty Images)

By: Shubham Ghosh

HERE are news in brief on Indian economy and business for Friday, March 1, 2024:

India on Friday finalised five major defense acquisition contracts valued at Rs 39,125 crore (£3.7 billion), including BrahMos supersonic cruise missiles, radars, weapon systems, and MiG-29 jet aero-engines. Amid the ongoing border tension with China in eastern Ladakh, these procurements aim to enhance the armed forces’ combat capabilities and bolster domestic defence manufacturing. Signed in the presence of defence minister Rajnath Singh and defence secretary Giridhar Aramane, the deals will reinforce indigenous capabilities, save foreign exchange, and curb reliance on overseas equipment manufacturers, an official readout said. Two separate contracts were sealed for BrahMos missile procurement — the first from BrahMos Aerospace Private Ltd (BAPL) worth Rs 19,518.65 crore (£1.8 billion) and the second for procurement of the ship-borne BrahMos system from the BAPL at a cost of Rs 988 crore (£94.2 million).

Indian prime minister Narendra Modi on Friday said three upcoming semiconductor units in the country will further strengthen its “transformative journey” towards technological self-reliance. The government on Thursday approved proposals to set up three semiconductor plants, including a mega fab by Tata Group, at a cumulative investment of Rs 1.26 lakh crore (£12 billion), as India moves to position itself as a global powerhouse in chip manufacturing. The government is offering incentives of up to Rs 76,000 crore (£7.2 billion) to boost domestic manufacturing of semiconductors, which are essential components of electronic devices and find usage in mobile phones, laptops, refrigerators, washing machines and automobiles, among others. Two of the plants will be set up in the western state of Gujarat and one in the north-eastern state of Assam.

A comprehensive review of the status of implementation of various India-supported development projects in the Himalayan nation of Bhutan was carried out at a high-level meeting between the two sides in New Delhi on Friday. The Bhutanese side expressed appreciation to the people and government of India for their unwavering support and cooperation extended to it during the difficult time of the Covid-19 pandemic, the Indian external affairs ministry said. “Through the 12th Five Year Plan bilateral partnership, 83 project-based assistance and 524 high-impact community development projects in the areas of education, health, digital development, capacity development, law, infrastructure, trade, agriculture, sports and culture have been successfully implemented,” the ministry said.

Indian finance minister Nirmala Sitharaman on Friday virtually launched seven infrastructure projects worth over Rs 1,000 crore (£95.3 million), her ministry said. In her address on the occasion, Sitharaman said it is important to ensure that projects are planned and completed without delays and the department concerned should ensure that construction begins on time and projects are completed within the given time frame. “Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman virtually launched seven infrastructure projects worth over Rs 1,000 crore from New Delhi, today,” the ministry said. The projects included unveiling the plaque for the construction of residential quarters of income tax department officers at Faridabad and Gurugram in the northern states of Uttar Pradesh and Haryana, respectively.

The western Indian state Maharashtra is ranked first in foreign direct investment (FDI) by securing over Rs 1 lakh crore (£9.5 billion) of overseas fund flows and trumping the next three states on the list by a significant margin, its deputy chief minister Devendra Fadnavis said on Friday. Speaking in the state’s legislative council, Fadnavis said Maharashtra received investment of Rs 100,112 crore (£9.5 billion) between April and December. “This is important because the states we say there is a competition with, like Karnataka, has secured investment of Rs 30,219 crore (£2.8 billion), Gujarat Rs 48,410 crore (£4.6 billion), Delhi Rs 31,361 crore (£2.9 billion). If the FDI of these states are combined, then it comes to around Rs 109,000 crore (£10.3 billion), while Maharashtra alone has secured investment of Rs 1 lakh crore,” he said in the House.

India’s TVS Motor Company recorded monthly sales of 368,424 units in February 2024 with a growth of 33 per cent as against 276,150 units in February last year, news agency Asian News International reported. Total two-wheelers registered a growth of 34 per cent, with sales increasing from 267,026 units in February 2023 to 357,810 units in February 2024. Domestic two-wheeler registered growth of 21 per cent with sales increasing from 221,402 units in February 2023 to 267,502 units in February 2024. Sale of electric vehicles registered a growth of 16 per cent with sales increasing from 15,522 units in February 2023 to 17,959 units in February 2024.

(Agencies)

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