Two major defence projects that have been cleared by India and the US could also spell good news for the MSMEs involved in manufacturing defence equipment components.
Last week India and the US inked two major defence deals. The first one was to jointly develop protective equipment and gear for soldiers, especially against biological and chemical warfare. The second deal was of building generators. The two projects were cleared by the Defence Secretary Ashton Carter and Indian defence officials. The security ties between the two countries have strengthened over a couple of years. Both the countries were on the opposite sides during the Cold War. These defence projects could be lucky for the MSMEs who are involved in manufacturing of defence equipment. Since a number of components for the armed forces are provided by small and medium scale entrepreneurs, these deals will further boost their business.
So far, the two projects that have been approved by both the parties have been on a modest scale. There is a high possibility that the two countries will be involved in something much more on a grand scale. In the recent years, US has been India’s. There also talks going on projects based on jet engines, aircraft technology between the two countries. MSMEs again gain to stand if deals in the above-mentioned areas get finalised. Carter will also sign a 10-year defence cooperation pact with Defence Minister Manohar Parikkar.
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