Morocco welcomes Indian defense companies to set up shop

Morocco has emerged as a gateway for Indian defense exports to Africa and Europe, fostering strong bilateral ties and increasing investment opportunities. | Photo Credit: X/@SIDIndia

Morocco is emerging as a springboard for India’s ambitions to expand its footprint in Africa for defense exports. Pitching Morocco as a gateway to Africa and Europe for Indian companies, Abdeltif Loodi, Morocco’s ministerial representative to the head of government, and in charge of the National Defense Administration, said they want to “offer state-of-the-art. Environment, zero bureaucracy, and profitability for Indian defense companies.”

“Morocco and India enjoy excellent bilateral relations based on mutual respect, and have the potential to pursue their positive momentum in various fields, including defense,” Mr. Loudi said while addressing the Indo-Morocco Defense Industry Seminar held in Rabat on December 9. 10, and is jointly organized by the Defense Ministries of the two countries, the Indian Embassy in Morocco and the Society of Indian Defense Manufacturers. “We want you in Morocco; we will support you,” he said.

The seminar can only strengthen the historic ties between two emerging economies, Morocco and India, with increased strategic cooperation in the defense sector, the minister said. “This will benefit the Government of India’s ‘Make in India’ initiative, which aims to strengthen national manufacturing capacity while promoting international cooperation,” he said.

Recently, the Tata Group announced plans to set up its first defense manufacturing facility in that country, which is also India’s first. Referring to this, Mr. Loudi said the launch of the Strategic Defense Industry Project has put Morocco in the spotlight as a defense development hub and opened up promising prospects for investors interested in the defense and high-tech sectors. The new strategic partnership signed between the National Defense Administration and the Tata Group, aims at the local production of the WhAP 8×8 ground combat vehicle. “The partnership between ADN and TASM is part of a broader drive to develop Morocco’s defense industry with the aim of gradually building strategic autonomy,” he observed.

Morocco has adopted a new legal framework to control defense industry activity, opting for a gradual approach based on an attractive investment climate, incentives for international investors, and the creation of an industrial ecosystem around the defense industry sector, the minister said. “Furthermore, Morocco’s influence in Africa and the Middle East, its sea and air connectivity, and its modern infrastructure are proven assets that make it a regional and global export platform for investors,” he added.

Morocco has free trade agreements (FTAs) with 90 countries in Africa and Europe, which officials say will facilitate access.

In this context, the Moroccan minister said that under the direction of His Majesty the King, Supreme Commander and Commander-in-Chief of the Royal Armed Forces of Morocco, the defense industry has been included in the drive to accelerate the industrialization of his country.

The seminar provided opportunities for joint ventures, technology sharing, and procurement capacity for Indian defense companies in Morocco, officials said. An objective was also to understand Morocco’s specific defense needs, particularly in armored personnel carriers and other critical assets, and provide tailored solutions through Indian defense manufacturing expertise to support their approach to defense modernization, an official said.

“The presentation by Moroccan officials emphasized the country’s investor-friendly environment; free zones including the Atlantic Free Zone; and incentives for foreign investment. The Indian delegation also visited the Atlantic Free Zone, gaining a comprehensive understanding of Morocco’s industrial landscape,” the Society of Indian Defense Manufacturers said. said on social media platform X.

Mr. Loudi’s 2018 visit to India focused on hydrography, peacekeeping, telemedicine, information technology, counterterrorism, and counterinsurgency. Key agreements included memorandums of understanding on cyber security and the peaceful use of outer space, strengthening cooperation in advanced technologies, and defense. Morocco’s defense budget is 5% of its GDP.

Bilateral trade between India and Morocco was estimated to be around $4.1 billion in 2023, with major exports from India including refined petroleum, vehicles and various chemicals. India is the largest buyer of phosphate from Morocco.