RM Arun Jaitley Explains The "Strategic Partner" Policy | 'SP' To Supplement FDI

Shailesh Kumar, National Defence,

New Delhi, 01 May 2017

Defence Minister, Arun Jaitley, praised the three years of his Government and termed the clearence of proposals as "Unprecedented" comparing the three years of defence ministery of this Government with the last ten years of the defence ministry run by previous Congress led UPA Government. RM Jaitley was addressing a press conference at National Media Centre called on completion of the three years of BJP Government. He also explained the "Strategic Partnership" policy brought by BJP Government. He claimed that Strategic Partnership will supplement the FDI in India. Here are the excerpts on "Strategic Partnership":  

"As far as present proposals are concerned, there is under Defence Procurement Procedures (DPP), a particular mechanism by which proposals are taken. And the manner in which the proposals are being cleared by the Defence Acquisition Council (DAC) over the last three years were unprecedented, if you compare with the inaction of the previous ten years". 

"As far as the FDI is concerned, originally, its being liberalised in phases 26 %, 49 per cent then on cutting edge technology some changes were made".

"FDI changes merely opened the door. They are enabling. They themselves do not ensure that immediately the entry of participant will take place". 

"The reason is very simple. There is only one purchaser within the country. That is Government of India (GoI)". 

"So unless opening of FDI is accompanied by some reasonable possibility of investers possibly getting some orders, he is not going to set up an establishment. It is linked to the kind of order he will get; And the only entity that can place the order is Government of India". 

"There are no two procurers. There is only one procurer of the defence equipment in india. That is why the Strategic Partner Policy  has been brought in. Because it is going to supplement the FDI policy. Whether the strategic partner comes through the FDI route or he comes through just technological tie up, he will be free to do so".

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