EXCITeMenT oVer Aero InDIA’17

India has become a major buyer for the Defence and Aerospace sectors.

The Bengaluru skies are busy again, as the aerobatics team of the Indian Air Force Sarang rehearsing for last few days at the Yelahanka Airforce station is all set to steal hearts this Valentine’s day on 14th February .

Excitement has gripped Bengaluru City with the Aero India 2017. The Aero India has grown in its eleven editions from being a showcase of aviation technology to a proud platform of success stories of “Make In India,” where the Indian companies now talk at par with the international majors on partnerships, technology transfers and even exporting aircraft components to the world.

The clarion call of the Prime Minister’s “Make in India” at the last Aero India seems to be flowering with theme continuing this year with bigger Indian participation and aircraft majors giving thrust to “Make In India”.

This year’s Aero India expects over 2 lac business visitors to attend the five day event. The show has emerged as one of the biggest in the aviation calendar not just in number of participants but also with 594 companies , including 270 Indian companies this year promising to make it the biggest edition of the biennial fair.

Amidst the din of the roaring engines of the over 72 aircrafts which will participate in the Aero India 2017, trade bodies are busy lining up B2B meetings. Udyog Mitra, the investment seeking of Karnataka government is showcasing the dedicated Aeroparks to attract investment in setting up manufacturing and assembling hubs in the state. Gaurav Gupta, Commissioner of Industries, Government of Karnataka told SuNDAy GuArDIAN, ”We have leadership in the sector .With presence of several public sector units.

“The objective is to develop a strong ecosystem around them by roping in the MSME’s. The second advantage we have is availability of a strong technical manpower resource. The delegates who come for Aero India 2017 will be able to see the thrust we have given to Make in Karnataka.”

India has become a major buyer for the aviation and aerospace sectors. With the civil aviation sector growing at over 22% annually and the Indian Defence acquisition growing at over 10% Year on Year (YoY) , the country offers promise to the Global industry to do business in India.

In September 2016, the Government Of India signed a deal for 36 Rafales for roughly $7.87 billion. It went on to become the biggest defence deal of 2016 globally. The International defence industry which has seen no major purchases by any country is eyeing India with a lot of hope. What’s attracting the world is the big shopping list that India’s defence minister Manohar Parrikar has got ready in consultation with the defence forces. The shopping list includes single engine fighter aircrafts to replace the ageing MIG Fleet.

The global majors got excited when within weeks of signing the Rafale deal, Ministry of Defence issued another RFI for a single engine fighter aircraft under it’s `Make in India` initiative. In the last few weeks both Lockheed Martin and SAAB which makes the “Gripen” are excited about India plan as they feel they have got another chance to fly the Indian skies in Indian Air Force colours. Both the companies have promised to setup production lines in India with complete

` Transfer of Technology”.Lockheed Martin wants to push ahead with plans to move production of its F-16 combat jets to India, but understands President Donald Trump’s administration may want to take a “fresh look” at the proposal. In the interim , the over 8% price drop on the Supersonic F-35 for the latest US airforce order by Lockheed Martin may mount pressures internationally for getting the metal birds at under 100 Mn US$ like the – has managed to negotiate hard.

Ahead of the aeroshow in Bengaluru SAAB is looking at assuring India that it can set up a modern assembly line in India for making the `Gripen’. After the refusal by the Indian Navy to absorb the naval variant of the Tejas , it has opened another vista for the Swedish aircraft maker to pitch with its naval variant of the `Gripen’ as it offered the same to Indian Navy two days back.

So while the Bangalore skies get set to hear the roars of these metal birds , the marketing team busy with showcasing the features to build an `opinion’ in favour of the aircraft the Ministry Of Defence officials take a close look at the budgets. The recent budget allocations of Rs 2,62,390 crores has Rs 19280 crores for aircraft and aero engine acquisitions this year.

India opening its shopping basket for new single engine fighter aircrafts has raised several questions on two of IAF’s ongoing acquisitions.

Questions are being raised on the future of the ambitious `Tejas’ project of the Hindustan Aeronautics Limited and the Rafale deal. HAL which has been plagued by delivery delays has been trying its best to meet the requirements of the IAF. The part squadron of the Light Combat Aircraft `Tejas’ is presently operating under the watchful eyes of HAL engineers even as there is no clarity as when HAL can step up production.

On the other hand , the Rafale’s acquisition is being questioned. As per the deal deliveries must start within 36 months (i.e. from September 2019) and must be completedwithin 67 months(i.e. by March 2022). The question being raised is how, in the long run, these 36 Rafales will help IAF. The IAF will have to set up a separate maintenance line for just 36 Rafales.

Newsx and The Sunday Guardian recently organized the Defence and Aerospace Summit in New Delhi as a curtain raiser to Aero India 2017.