Clear skies predicted for aerospace and defence sector

Indigenisation is likely to create additional jobs in India

April 21, 2015 06:29 pm | Updated April 29, 2015 05:32 pm IST

G. Raj Narayan.

G. Raj Narayan.

Proposed indigenisation of certain processes and increased participation of private players are among factors expected to give a fillip to a sector that is considered stunted in growth due to heavy reliance on the public sector. Clear skies are said to be presiding over the aerospace and defence sector. In a 2013 report, McKinsey said India’s Defence industry, which had grown substantially in recent years, was headed for even better days. The report said that India’s $12 billion defence market would continue on a strong growth trajectory through 2020.

“Till 2005, there were hardly any private players in this sector. Being a specialised industry requiring high technical knowledge and standards, companies cannot expect to acquire competency overnight. The last 10 years have been a gestation period for private enterprises in this field, and it is only now that we are establishing a foothold. We expect to grow at 25 to 30 per cent per annum,” says G. Raj Narayan, founder and Managing Director, Radel Group and chief mentor of DRONA.

While the maintenance operations of the aerospace and defence sector are completely managed by the armed services and the departments of defence production, it is the indigenous industry engaged in the manufacture of certain parts for the sector that offer most of the employment opportunities for skilled manpower.

Technicians, inspectors, engineering supervisors and managers are sought after. But, companies are faced with a major skill gap. While, every year, over 2.5 million graduates are added to the workforce, including 300,000 engineers and 150,000 IT professionals, according to industry sources, the research and training institutes in India are unable to meet the requirement. Aerospace and defence is especially dependent on highly skilled workers, says a 2011 KPMG and CII report on the sector.

“The A&D sector is multi-disciplinary by nature. Designers as well as technicians and managers need to be capable of appreciating the intricacies of the complex systems. In the case of designers, a broad knowledge of the multiple disciplines of engineering, besides good design skills in the core discipline and familiarity with military standards, is most desirable. Designers should also be capable of reverse engineering. In the case of manufacturing personnel, ability to control processes is one of the essential talents,” says Raj

Quoting from a recent study, he says even a 20 to 25 percent reduction in imports could directly create an additional one lakh or more of jobs in India. If the government strives to extend the indigenous content to 70 per cent in the next few years, then this figure is likely to swell further.

But to bridge the skill gap, experts say, industry-academia cooperation is essential.

“Technical educational institutions can offer specialisation elective subjects that provide some insights into the unique requirements of the A&D sector. Also, both public and private industries operating in the sector can impart training on short-term apprenticeship. This would enable the trainees to have greater exposure in an industrial environment. DRONA for instance is a technical finishing school that provides training in design, manufacturing and soft skills in the A & D sector,” adds Raj.

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