Aero India 2017 : Make In India Mantra
The Aero India has grown in its eleven editions from being a showcase of aviation technology to a proud platform of success stories of ‘Make In India’ where the Indian companies now talk at par with the international majors on partnerships, technology transfers and even exporting aircraft components to the world.
With 594 companies participating this year including 270 Indian companies this year made it the biggest edition of the biennial fair and largest Indian participation. Aero India has emerged as a platform for the Indian and International Defence production companies to showcase technical advances..The growing defence budget has seen India emerge as a major buyer for the aviation and aerospace sectors. With the civil aviation sector growing at over 22% annually and the Indian Defence acquisition growing at over 10% Year on Year (YoY) , the country offers promise to the Global industry to do business in India.
What’s attracting the world is the long shopping list that India’s defence minister Manohar Parrikar has got ready. While on top of the shopping list is single engine fighter aircrafts to replace the ageing Mig Fleet. The global majors got excited when within weeks of signing the Rafale deal with the French , the Ministry of Defence issued another RFI for a single engine fighter aircraft under it’s prestigious `Make in India` initiative. In the last few weeks two airctaft manufacturers US based Lockheed Martin and SAAB which makes the versatile fighter aircraft the ‘Gripen’ are excited about Indian acquisition plan and made their presence strongly felt at AeroIndia 2017 as they feel they have got another opportunity to fly the Indian skies in Indian Air Force colors.
Both the companies have promised to setup production lines in India with complete `Transfer of Technology`.
Outlining the Make In India priorities , Manohar Parrikar said ,”What I am saying is what I want – I want it to be Made in India. Export to third nation is an additional bonus (and) if someone wants to shift the facility from somewhere else or whether he to sets up a new one- it is his choice. I am no way concerned with it. And if there is a restriction on some movement – as far as a I am concerned as of now there is no such issue no one has written to me I only read it in the media – it is for that company to take care because whenever I am going to go to for a strategic partner, the condition of OEM is their government’s approval for whatever they are proposing. If they are proposing their government will have to give them in principle approval”
The question arises in light of the proposal of F-16 manufactruer Lockheed Martin who want to push ahead with plans to move production of its F-16 combat jets to India, but given that President Donald Trump’s administration may want to take a “fresh look” at the proposal.
Most majors understand that complying with the Make in India thrust of Indian government is the key to getting business in India. Just this week Boeing announced the establishment of Boeing Defence India (BDI) – a local corporate entity – to support future growth objectives in the country.
Underscoring the importance of the market to Boeing, India becomes only the fourth country outside the United States where the corporation has established a dedicated defence division. “As a key market for Boeing, we are making the changes necessary to position ourselves for future growth, drive decision-making closer to the customer, strengthen partnerships with local companies in India, and accelerate our efforts to achieve the country’s ‘Make in India’ vision,” said Leanne Caret, president and chief executive officer of Boeing Defense, Space, and Security.
Many of the countries this time are prepared to not just make In India , but see an opportunity in Making In India and Exporting from India. A delegation of 20 British companies are working along with the Govt Of the United Kingdom in this direction. Speaking to Policy Pulse ,Sophie Lane Regionalo Director of Department of International Trade expressed confidence in the proposal to set up Joint Ventures with Indian companies. “We have signed 5 joint ventures this month and expect some more during the coming months. We want to assure the Indian Government that the proposals will not just make the Indian companies become an important element to supply to British Companies but also to bid for British tenders”she added.
Israel Aerospace Industries (IAI) has always supported India’s defence acquisitions. IAI announced a new export-version of its long-range Heron TP unmanned aerial vehicle (UAV) on 9 February, saying it will be displayed at the Aero India 2017 .The Heron TP XP is identical to the Heron TP except that it has been re-engineered to limit its payload to 450 kg, rather than the 1,000 kg the Israeli Air Force’s Heron TP can carry. The same will help India buy the Missile Technology Compliant Regime ( MTCR) variant.
While the Indian industry itself is gearing up for the Defence sector after FDI was encouraged in it two years ago. Major players like Reliance Industries , Adani and many others are scouting for opportunities to bid for Indian defence requirements, At the same time Indian small sector is undergoing technical upgradation and using Aero India to demonstrate technology. Federation of Karnataka Chambers of Commerce and Industry speaking to Policy Pulse said ,” While the entrepreneurs are all set to upgrade technology as many of them are keen. But the support and liaison coordination has to become stronger , quicker and better. Only if the linkages are stronger , industry will be more keen to invest in setting up better R and D centres etc”
So as Make In India takes wings , slowly but steadily the Lion of Make In India has started the walk .It may be a while before it really moves faster and roars.
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