Getting approval for 100% Foreign Direct Investment (FDI) in defence manufacturing makes Swedish defence company Saab more committed to the ‘Make in India’ vision.

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Mats Palmberg, the Chairman and MD of Saab India, spoke to CNBC TV18 about this and said, “Carl-Gustaf is a well-established weapon for the Indian army for many years. We are reasonably confident of the need of the Indian army for replacing the existing inventory of Carl-Gustaf rifles with the latest M4 Version”.

The Indian Army has been using the Carl-Gustaf rocket system since 1970. Now, Saab is offering to make the latest M4 version in India.

Palmberg confirmed that Saab hasn’t received an order from the Indian army yet. However, they have found a location for manufacturing. The whole process, from applying for FDI to getting approval, took about six months.

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Saab plans to create an Indian subsidiary to manufacture the Carl-Gustaf weapon systems. While their main focus is the Indian Army, they also plan to export the weapon system.

Palmberg said, “There are opportunties elsewhere in the world as well. But having an order from the Indian army to launch production would be extremely important for our domestic manufacturing. For exports we will have to take permission from both Indian and Swedish governments”.

He also mentioned that making Carl-Gustaf rifles in India would create more opportunities to deepen supply chains. He pointed out that foreign-owned companies are currently not allowed to participate in certain defence contracts. He urged the government to give equal opportunities to companies like Saab that are well-established in India.

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(Edited by : Vivek Dubey)

First Published:Nov 7, 2023 6:58 PM IST