(This article is originally posted by the Livemint)
Simplification in the administration of offsets, incentives to original equipment manufacturers (OEMs) to increase their research and development (R&D) activities, and increasing the local aerospace and defence (A&D) ecosystem are some of the measures that will help Make in India, Salil Gupte president of Boeing India said.
Companies such as Boeing would look for taxation and other stimulus relief for airlines, Salil Gupte, the president of Boeing India says, as Union finance minister Nirmala Sitharaman readies to unveil her third budget.
It will help India recover early from the economic shock that has resulted from the covid-19 pandemic. Simplification in the administration of offsets, incentives to original equipment manufacturers (OEMs) to increase their research and development (R&D) activities, and increasing the local aerospace and defence (A&D) ecosystem are some of the measures that will help Make in India, Gupte says in an interview.
The Atmanirbhar vision requires policies that encourage global competitiveness.
The signals everyone is looking for are very clear, increased stimulus for the aviation sector, maintaining capital budget commitments for military modernization and defence preparedness, and increased allocations to boost mission-readiness and modernization of the forces.
The covid-19 pandemic has dealt a big blow to the aviation and defence industry. We project it will take about three years for travel to return to 2019 levels and it will be a few years beyond that for the industry to return to long-term trend growth.
However, the fundamentals of the industry remains intact. The aviation industry is the lifeblood of commerce in India and around the world and we continue to be optimistic of its recovery, as in past crises.
We urge the government to bring in much needed taxation and other stimulus relief for airlines that will position India, with its strongly recovering demand, for an early recovery from the shock caused by the pandemic.
Defence policies such as the Defence Acquisition Procedure (DAP) 2020 and Defence Production and Export Promotion Policy (DPEPP) 2020 lay a solid foundation to attract investments and build capabilities for the sector.
When coupled with enablers, such as increasing foreign direct investment (FDI) in defence, we believe this will go a long way to harness the potential of the Indian aerospace and defence industry.
In 2021, we look forward to the realization of strong policy intent in the execution of DAP 2020 and the simplification of offsets’ administration based on the guiding principles of DAP 2020.
The Atmanirbhar Bharat vision requires policies that encourage global competitiveness through financial and technology investments in the Indian supply chain, especially in micro, small and medium enterprises (MSMEs), and by up-skilling India’s labour force in the latest techniques in manufacturing and maintenance. We’ve been partnering with the government and the Indian industry on this exciting journey.