With the Indian Prime Minister appeal
of “Make in India”policy , it would be
worthwhile to see how the global defence majors react to it.
In the biennial 5 day Aero India 2015
event, around 330 foreign companies and 270 Indian companies would be present
to showcase their portfolio and might in the Aero/defence segment.
The show has transformed itself to be a
major attraction for armament giants since 1996. The exhibitors would show
their strength and competency to the world’s largest importer who is looking
forward to have deals closed worth USD 60 billion.
India plans to shell out another USD 120
billion in arms procurement in the next decade, considering the shortage and
upgradation of helicopters, fighter planes, submarines and artillery for the
1.5 million armed force contingent.
Indian Air Force itself would require
about USD 35 billion to build its air combat prowess and introduction of
various new and advanced fighters & helicopters, mid air refuellers &
transport planes, spy & combat drones and advanced missiles & radars.
India has the 3rd largest armed force in
the world, 40% of its budget is spent on capital acquisitions and more than 60%
of the requirements are met by imports.
For India, currently there is an
opportunity to avail the defence offset obligation of approx. INR 250 billion
during next 7-8 years.
Majors in this segment of the likes of
Boeing, Airbus, Lockheed Martin , BAE systems, Israeli Aerospace and Dassault
aviation would be lined up to showcase
their might .They will have their fighter planes and helicopters for display as
well to showcase their flying competencies.
The majority of the participating
companies would be from USA represented by 64 companies, France having 58
companies and then followed by UK with 48 companies, Russia (41),Israel(25) and
Germany with 17 participants.
With the major thrust being on the “Make
in India policy”, a defence manufacturing investors summit and Global CEO’s
conference would be held for the first time to focus and discuss with the key
stakeholders on making India self reliant in its defence production.
About 150 CEO’s from the foreign and
domestic delegation have been invited to discuss the “Make in India” policy.
This conference will also be attended by Ministerial / defence heads &
military chiefs and other dignitaries of the level of Secretary level
delegations representing several countries across the globe.
It would be notable to see how the
government translates this opportunity to build a strong domestic defence
industrial base. There has aready been a hike in the FDI cap to 49% in the
defence sector, but it’s yet to attract the global arms companies to set up its
base in India.
The Indian armed forces is also looking
forward to have more than 1,000
helicopters of various types in the next 15 years, most of which will nowon be
manufactured in India with the assistance of foreign collaboration.
Indian private companies are also now
considering a tie-up with global arms firms and are planning to enter the
defence production. The Indian government is working toomit the hindrances for
arms exports and is in the process of simplifying the complicated 'Make in
India' procedure for indigenous R&D, development and production of arms.
This procedure will include the
government funding the 80% of the development cost of the arms and weapons
prototypes, with the rest 20% being funded by the industry for the projects
having longer gestation period and high technological risk projects.
It has also been proposed that the
funding may also go upto 100% if the MSME are also being involved in the
manufacturing process.
More than 150,000 business visitors and
300,000 general visitors are expected in this Aero India 2015 show.
This AeroIndia 2015 would be a major
attraction for all the global Defence and Aerospace industry.
Few of the major companies participating
as foreign Investors are AE India
Systems (UK) , Pilatus (Switzerland) , Lockheed Martin (USA) , Finmeccanica
(Italy) , Boeing India (USA) , Raytheon (USA) , MBDA (France) , Raffel (France)
, IAI (Israel) , Rafael (Israel).
For
further information on this blog, please visit- http://mrr.cm/4Sb
Few
of the related reports on the Defence Industry in India are as follows:
1st- Opportunity in the Indian Defence Market – 2014: visit
at- http://mrr.cm/4Su
2nd- Indian defence sector – Market overview, spend analysis,
imports, segmentation, key players and opportunity analysis : visit at- http://mrr.cm/43Q
3rd- India Defence and Security Report Q1 2015: visit at- http://mrr.cm/4SL
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