Saab AB, a Sweden-based aerospace and defence company, has begun construction of its new Carl-Gustaf manufacturing plant in Jhajjar, India.

As part of Saab’s new plans in India, the Swedish arms manufacturer has set up a new entity, Saab FFVO In, to build its first Carl-Gustaf M4’s manufacturing facility outside Sweden. The new factory will use recent technologies, including modern imaging technology and advanced carbon fibre winding, to manufacture the Carl-Gustaf M4 grenade launcher for the Indian army, as well as components that may be used for other military systems.

The decision to invest in India and establish a manufacturing facility there highlights the growing trust in the country’s defence sector capabilities. 

Görgen Johansson, senior vice president and head of Saab’s Business Area Dynamics, said: “I am proud to start constructing our first facility outside Sweden for Carl-Gustaf, a product that has a long history with the Indian Armed Forces. We look forward to starting production of our excellent product, now engineered and made in India”.

Once completed, the 4567 m2 facility will hire around 100 employees and meet the “Make in India” requirements. The government-led initiative is looking to attract more investments in the Indian manufacturing sector, as tensions between the West and China continue to rise and pose a risk to already-strained supply chains. 

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By 2025, the Ministry of Defence aims to have a turnover of $26bn in aerospace and defense manufacturingwith $5bn in exports.