INDIAN ARMED FORCES CHIEFS ON
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— General Manoj Pande, Indian Army Chief

 
 
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Home-Grown Truths

Issue: 11-2009By Sangeeta Saxena

The fourth International Conference on Energizing Indian Aerospace Industry saw the best brains of the industry voice their views in a number of incisive sessions

November 19 and 20 witnessed a brainstorming vis-à-vis the country’s aerospace sector with the spotlight firmly on effecting a strategic shift from that of a buyer to a manufacturer and the need to create an industrial structure. The platform was the fourth International Conference on Energizing Indian Aerospace Industry organised by the Confederation of Indian Industry (CII) and the Centre for Air Power Studies in association with the Indian Air Force.

Best brains of the industry debated and attempted solutions in a number of incisive sessions spread across the two-day event, beginning with the inaugural session that deliberated on the increased relevance of aerospace power to national security, it being a critical component of national power and an important strategic capability, to deal with internal and external security issues. The CII encouraged under its aegis potential entrepreneurs to set up industries for manufacture and maintenance of aerospace components, systems and materials and also appreciated the setting up of the aerospace Special Economic Zone.

Delivering the key note address, Vice Chief of the Air Staff Air Marshal P.K. Barbora put forth his views candidly. “In the area of aerospace, we are still very weak. We need to create aerospace related infrastructure,” the Air Marshal said, adding, “India missed on the mid-level technology, so we went in for outright direct purchase and the seller was very happy. Partnerships and joint ventures are two magic words for the India of tomorrow. Private sector must be allowed a free hand. You can’t tie them down. Also we must open up export for them. They must be allowed a market of their choice and not ours. India needs to take bold steps in FDI policy for the defence sector.”

Discussing the Indian industry’s perspectives, the speakers were unequivocal on the need for public-private partnership to develop the required advanced technology. The Indian defence industry needs to improve in many ways, was a common refrain. Emphasis was on the renewed role of Indian defence industry which should also focus on other important areas like design technology and data protocols rather than limiting itself to just licensed productions. The Government of India’s revised Defence Procurement Policy (DPP) has opened the gates for Indian firms to join in the bidding for defence acquisitions. As of now, in “Buy and Make” cases, Request for Proposal is issued only to foreign vendors, who are required to transfer technology to the Indian defence industry, also called production agency. The difference between the earlier and revised policy is that the production and development by Indian industry will be through transfer of technology and not through research and development. So, it’s “Buy & Make Indian” now.

Challenges and opportunities in technology upgrades and the emergence of a transparent policy framework by the government, and consequent infusion of foreign investment and technology transfers, will have a favourable impact on the industry, tapping the great potential in the civil aviation sector as well. The elements of aerospace power are considerable funding, a very high technology base, very competent and motivated people, well-endowed R&D infrastructure, efficient industry with deep pockets and an operational feedback. For a developing nation, India is fairly well-off on many counts. But there is no denying the ‘technology gap’.