At earlier Aero India airshows, the talk was always about what new fighters India would spend billions on, and which foreign company would take the cake. All that Indian companies — even the Tatas and L&Ts — could hope for were crumbs from the “offset” requirements in big deals. But at Aero India 2015 last week, there were signs things had changed. “Make in India” was on everyone’s lips, from CEOs of top multinationals to those of Indian firms that had waited too long in the wings. The talk was now around co-development and co-production.
Since taking office, the Modi government has brought back to India, as it were, contracts to make hundreds of military helicopters, some artillery, submarines, etc. No longer is an Indian company one of many junior partners of an American or European giant; in many new deals, an Indian company will lead, and bring in a foreign partner for technology transfer. When the long-delayed Rs 50,000-crore P-75I contract for six submarines is awarded, for instance, it will be to an Indian company, perhaps one of the government shipyards or L&T, that will bring in a foreign partner in a joint venture.
Foreign firms have got the message. As the India head of a British defence giant said, gone are the days of making things elsewhere and exporting to India. Today, it’s all about partnering and collaborating with Indian firms. There isn’t another market like India, and therefore they have little choice. “Make in India” in defence/aerospace is ready for takeoff.
