World second largest defence importer India urges for made in India tag

A continuous upward trend on defence imports by India since 2011 is being reported among weapons manufacturers, making today India second-largest importer in the world after Saudi Arabia says the citizen.

However, the main supplier the US supplying one-third of all defence exports among exporters. It was announced In the 11th biennial edition of aero India 2017that India has a long list of billion dollars purchasing to do in defence segment but will be writing cheques if are made in India says Hindustan times. India wants to become minority partner as it announces new policy inviting foreign defence manufacturers to set up shop in India. As it initiated the bidding process for submarines in July. Considering it this deals will bring job opportunities and global tech and trading into India.

The response is positive from foreign companies saying the opportunities are too good to miss.

According to Europe’s Airbus Group who are kin to settle the deal, Panther helicopter said that if it wins a contract worth several billion dollars which expected to span at least decade it would make India it global hub multi-purpose choppers, as it currently builds as Marignane in France.

Report from Lockheed Martina pre-eminent designer-developer and manufacturer of the world most advanced aircraft, if its air craft F-16 fighter jet is selected it will” support the advancement of the Indian manufacturing expertise”.

Germany’s ThyssenKrupp marine system and France’s Naval group are eager to compete for a contract from India upto $10 billion to build submarines in the south Asian country.

As luring such major defence company in India will big step for the economy and its development.

Prime Minister Narendra Modi with less than two-year to an election under pressure to create more job as that was also agenda during election campaign back. Though thousand of workforce joined every month but slated due to GST implementation in July.

Under strategic partnership policy, India is said to lined up domestic companies that foreign players have to choose from to set up local plants. And if resulting Indian companies which would hold major stake it a big win was saidby Dhiraj Mathur and aerospace and defence specialist for the PWC consultancy. He also said that we know nothing about defence manufacturing and we ‘r going to partner highly sophisticated equipment and the only reason they’re talking because of the government laying condition. However, the government want to bring up the India companies to global standards for the next round.

Whereas China has built up local defence equipment manufacturing by focusing international firms and to hand over technology. In India case, foreign players are still pushing for ownership. Ashish Saraf vice president for industrial development at Airbus said “let us take a lead let us be the majority” or let the Indian guys assume full liabilities(as per policy) on an aircraft is not easy. If a product fails, we are talking about hundred of millions.

The hurdle according to experts is that policy is that transferring defence technology requires government approval as it followed in the US. So it will challenge on both ways to see how India, as well as companies, get along.