A U.K. industry body which facilitates defence and aerospace partnerships has decided to shut its office in India. Member-companies have however, expressed concern at the decision.
“ADS (Aerospace, Defence, Security and Space) Group has decided to shut down its India office by March end. It is likely due to funding issues,” an industry source told this reporter.
This comes at a time when the U.K. government is trying to expand its cooperation with India in the backdrop of Brexit and the two countries are in the midst of series of high-level visits, the source stated.
While a few large U.K. companies such as Rolls Royce and BAE Systems have their own offices in India, the Small and Medium Enterprises (SME) which cannot afford to do so utilise the services of ADS to connect with Indian industry. ADS has over 1,000 U.K. members and has recently opened up membership for Indian companies as well. Some of the top Indian companies have joined the group since.
‘Unilateral move’
The decision was taken by the Chief Executive Paul Everitt in December and since then several member-companies have written letters to ADS questioning the decision and the reasons behind the move. They questioned if the decision was taken in consultation with the UK High Commission in India. One member alleged that it was a unilateral decision.
About 40 members have raised objections on the issue, the source said and added that for U.K. SMEs, it was an important platform to identify the right Indian partners. “Indian defence market is in the midst of a major expansion with emphasis on domestics manufacturing and of late Israel and U.S. companies have made major inroads. So the members are concerned about the closure,” he said.
When contacted, Mr. Everitt, without directly referring to the closure, told The Hindu in an email that ADS had made a long-term commitment to India and would continue to prioritise this relationship.
“ADS has refocussed its support for U.K. companies looking to develop their businesses in India. It has stepped up its engagement with the Indian High Commission in London to raise awareness of the opportunities that exist in the Indian defence and security market,” he stated.
Mr. Everitt said that ADS was also working closely with the UK India Business Council and Indian industry bodies that offer free service to support U.K. companies looking to establish themselves in India.
