National   

Foreign defence companies for tie-ups with India

By Sandeep Dikshit

NEW DELHI DEC. 30. The Defence Ministry's frequent interaction with the private sector and its approval to six proposals for private manufacturing have convinced foreign companies to take a hard look at the possibility of alliances.

The acceleration of policy initiatives along with the Government's commitment to easing defence procurement procedures has enthused major overseas companies to confirm their participation at the February biennial aero show, the fourth and probably the most well attended in its short history.

"We expect a 25 per cent growth. It will be bigger and better than before,'' said an official. The largest group of companies will be from Europe but there will be interested military aerospace firms from most parts, including one from Brazil.

Apart from the increase in numbers because of the militarily favourable geo-political situation, the show is expected to be different in other aspects as well.

Apart from the improvement in facilities to exhibitors which should be expected considering the large number of overseas visits logged annually by Indian defence officials, the organisers also plan to invite key staff officers and officers from other countries.

This will broaden vistas for Indian companies which have so far supplied sub-components to only the Indian armed forces. Analysts believe that if they wish to achieve economies of scale in manufacturing under the new defence production policy, plans would have to be made for export markets.

The armed forces have long complained about the low priority given by the private sector to their orders while the industry says orders are too few and far in between.

Export markets would fill the gap between orders from the armed forces and the industry could become totally geared towards meeting defence needs.

Traditional suppliers — Russia and France, besides the United Kingdom — provide most of the numbers but there will be significant participation from recent allies — Israel, Italy, Poland and Ukraine. Most will be seeking tie-ups with the premier Indian aerospace company, Hindustan Aeronautics Limited.

But the aim will be to not cater to the Indian aerospace requirements alone since HAL has already shown the inclination to test the waters in other countries.

Some companies would also be interested in servicing other South Asian markets. A lot would depend on the kind of reception they get from the Central and State Governments when they sit down to discuss their business plans. For now the Bangalore aerospace exposition is promising a good beginning.

Printer friendly page  
Send this article to Friends by E-Mail

National

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• Advani rules out talks with Pak. `proxies'
• BJP criticises Cong. demand for white paper
• Govt. under pressure to decide on `dual citizenship'
• Take action against VHP: Cong.
• Foreign defence companies for tie-ups with India
• Reshape APHC, says Shabir Shah
• Qayyum Khan for LoC as permanent border
• Polio in goats?
• VHP clarifies on Togadia's remarks
• Railway booking staff call off strike
• Centre to frame rules for permanent Lok Adalats
• 'A self-censure of NDA Govt.'
• SFI opposes cut in education allocation
• SC ruling in preventive detention cases
• 'Veda' registered as trademark in Germany
• Stand on Kashmir unchanged: Iran

Copyright © 2002, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu