Defence procurement system has been hit hard by delays and scams in the recent years allegedly due to lack of transparency and complicated long procedures.
Several acquisition plans such as the 126 combat aircraft, the 197 light chopper and 145 artillery howitzer deals have been hit by long delays in the recent past during the UPA regime.
The President said the government “will introduce policies to strengthen technology transfer, including through liberalised FDI in defence production”.
Different ministries of the government have already initiated steps to increase the existing 26 per cent cap in FDI in defence and it is likely to be allowed up to 100 per cent on case to case basis.
“With readily available skilled human resource, India can emerge as a global platform for defence manufacturing including software, which will strengthen our defence and spur industrial development as well as exports,” Mukherjee said.
He noted that the armed forces “serve the nation with professionalism, dedication and valour; securing our nation and supporting relief and rescue operations in the wake of disasters and calamities”.
“We will strengthen defence preparedness by modernising our armed forces and addressing the shortage of manpower on priority,” he said.
