. 24/7 Space News .
MILPLEX
Defence firms eye billion-dollar chance for 'made in India'
By Megha BAHREE
New Delhi (AFP) Aug 20, 2017


India has drawn up a shopping list for tens of billions of dollars of foreign fighter jets, armoured vehicles, submarines and helicopters but it will only sign the cheques if they are made in India.

The world's largest defence importer has announced a new policy inviting foreign defence manufacturers to set up shop as minority partners in India. It initiated the bidding process for submarines in July.

Such deals would boost job creation and bring key defence technologies into India.

Foreign companies say the opportunity is too good to miss.

Europe's Airbus Group, angling to sell its Panther helicopters, has said that if it wins a contract worth several billion dollars and expected to span at least a decade, it would make India its global hub for the multi-purpose choppers.

The company currently builds them at Marignane in France.

Lockheed Martin says if its F-16 fighter jets are selected -- it will likely compete with Saab for that order of close to $15 billion -- it will "support the advancement of Indian manufacturing expertise."

Germany's ThyssenKrupp Marine Systems and France's Naval Group are eager to compete for a contract of up to $10 billion to build submarines in the South Asian country.

Luring foreign defence companies to build in India would be a major and much-needed boost to the economy.

Prime Minister Narendra Modi, with less than two years to national elections, is under intense pressure to create more jobs for the hundreds of thousands of people joining the workforce every month.

Growth in the first three months of 2017 slowed to 6.1 percent. Experts expect further disruption as businesses adjust to a new nationwide goods and services tax launched in July.

- Make in India -

India is seeking to follow other countries which created defence sectors by backing a few big players with long-term defence orders and allowing smaller businesses to develop around them.

"Countries that have a robust defence industry have a few large companies that are supported by their government with large, long-term defence orders," Amber Dubey of the KPMG consultancy in India told AFP.

"They in turn create an eco-system of large and small suppliers to stay competitive."

India currently imports at least 90 percent of its defence equipment including parts for assembly. It is banking on foreign companies to bring in new technology.

The lowest bid is one key selection criteria that worries some of the competitors.

"We'd like to see the Indian government work with the US government to ensure that these acquisition policies don't disadvantage US companies just because we can't get the lowest price," Cara Abercrombie, former US deputy assistant secretary of defence for southeast Asia, told a recent panel in New York.

Under the strategic partnership policy, India will line up domestic companies that foreign players have to choose from to set up local plants.

For the Indian companies, which would hold the majority stake, it is a big win, says Dhiraj Mathur, an aerospace and defence specialist for the PwC consultancy.

"You know nothing about defence manufacturing and you're going to partner with a global leader to make highly sophisticated equipment and the only reason they're talking to you is because the government has told them to," he said.

The Indian government wants to bring the local companies up to global standards to compete for the next round of orders.

China also built up local defence equipment manufacturing by forcing international firms to link up with Chinese companies and to hand over technology.

In India's case, the foreign players are still pushing for ownership.

"Let us take a lead, let us be the majority," said Ashish Saraf, vice president for industrial development at Airbus.

"Or let the Indian guys assume full liability (as per the policy). Assuming liabilities on an aircraft is not easy.... If a product fails, we are talking about hundreds of millions."

His suggestion is a middle road where foreign companies can hold the majority stake, which can be pared back over time as the Indian partner gains in knowledge and experience.

"It takes years to transfer (technology) and to get proven products. These are complex products that need to perform in battles," said Saraf.

The other hurdle in the policy is that transferring defence technology requires government approval.

In a strategy similar to one followed by the United States, India puts the onus on the foreign partners to get the green light from their respective governments, a challenging task for them.

"But if you want indigenisation, this is the only way you'll get it," said PwC's Mathur.

mb/tw/mtp/ceb

AIRBUS GROUP

LOCKHEED MARTIN

SAAB AB

MILPLEX
China showcases weapon systems to possible foreign buyers
Washington (UPI) Aug 17, 2017
China this week presented its newest land-based weapons systems available for export to foreign military officers and procurement officials. China Daily reports that the presentation held by the state-owned China North Industries Group Corp, or Norinco, was made at a firing range on Wednesday in Inner Mongolia. About 230 officers from more than 50 countries - mostly military att ... read more

Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

MILPLEX
NASA Offers Space Station as Catalyst for Discovery in Washington

SpaceX launches super-computer to space station

Two Voyagers Taught Us How to Listen to Space

A look inside the Space Station's experimental BEAM module

MILPLEX
New thruster design increases efficiency for future spaceflight

Russia's S7 group plans to resume Zenit launches from Sea Launch platform

ISRO Develops Ship-Based Antenna System to Track Satellite Launches

SpaceX Sets August 14 Launch Date for Next US Resupply Mission to ISS

MILPLEX
For Moratorium on Sending Commands to Mars, Blame the Sun

Tributes to wetter times on Mars

Opportunity will spend three weeks at current location due to Solar Conjunction

Curiosity Mars Rover Begins Study of Ridge Destination

MILPLEX
China's satellite sends unbreakable cipher from space

Xian Satellite Control Center resolves over 10 major satellite faults in 50 years

China develops sea launches to boost space commerce

Chinese satellite Zhongxing-9A enters preset orbit

MILPLEX
ASTROSCALE Raises a Total of $25 Million in Series C Led by Private Companies

LISA Pathfinder: bake, rattle and roll

Blue Sky Network Reaffirms Commitment to Brazilian Market

India to Launch Exclusive Satellite for Afghanistan

MILPLEX
Surprise discovery in the search for energy efficient information storage

Electricity and silver effective at keeping bacteria off plastics

Researchers 3-D print first truly microfluidic 'lab on a chip' devices

2-faced 2-D material is a first at Rice

MILPLEX
A New Search for Extrasolar Planets from the Arecibo Observatory

Gulf of Mexico tube worm is one of the longest-living animals in the world

Molecular Outflow Launched Beyond Disk Around Young Star

Deep-sea animals eating plastic fibers from clothing

MILPLEX
New Horizons Video Soars over Pluto's Majestic Mountains and Icy Plains

Juno spots Jupiter's Great Red Spot

New evidence in support of the Planet Nine hypothesis

Scientists probe Neptune's depths to reveal secrets of icy planets









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.