Modi inaugurates Aero India 2015

Over 600 companies from India and abroad are participating at the five-day air show and Mr Modi's speech was keenly awaited for pointers to his government's policy on attracting foreign and domestic investment in the capital-intensive defence equipment manufacturing. The PM promised a defence sector that would have "room for everyone - public sector, private sector and foreign firms," also making clear that a preference would be



given to equipment manufactured in India.

He pointed out that 60 per cent of India's defence equipment continues to be imported and said, "Studies show that even a 20 to 25 per cent reduction in imports could directly create additional 100,000 to 120,000 highly skilled jobs." He pitched for a tax system that "does not discriminate against domestic manufacture in comparison to imports."

In his speech, in English, PM Modi talked about the politically contentious Foreign Direct Investment in Defence, saying it could go higher than the current 49 per cent if high tech was brought into the country. He talked about reforms and simpler approval processes.

The air show, he said, reflects "a new level of confidence within our country and global interest in India," the PM said.