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BAE Systems May Set Up Export Base in India

uday

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BAE Systems, the world's third-largest defence company in terms of revenue, wants to set up shop in India, instead of opting for the conventional route of selling military equipment from the US or UK or produce defence systems along with a local partner for the armed forces. It seeks to develop technology to meet Indian needs and create an export base for India as its long-term goal. Also, this company will be run and managed by Indians.

However, with the 26-per cent cap on FDI, there is no incentive for a global company to bring its best technology and expertise to India, BAE Systems India President, Julian Scopes, told Business Standard.

The government had turned down BAE's bid to own 49 per cent shareholding in a joint venture with Mahindra Defence Systems. Last month, BAE and Mahindra entered in a JV where BAE now has a 26 per-cent stake. Scopes said the company is satisfied with its current shareholding, but would continue to argue the case that the present FDI cap is bad for India.

"We are talking to all the relevant government departments regarding this," said Scopes.

For now, BAE has to operationalise the JV with Mahindra. It is also bidding to provide towed 155-mm howitzers and to develop a tactical communication system for the Army.

Also, India has an additional need for 57 Advanced Jet Trainers (Hawk). Under an earlier collaboration with Hindustan Aeronautics (HAL), BAE has delivered 23 jets and 42 jets would be produced by HAL under licence. However, Scopes said there have been a few glitches, such as time delays, in operationalising this project.

Citing the example of the company's set-up in the US, where due to a "Special Security Agreement" with the US government, BAE's top-level management in the US is staffed by Americans, US national security interests are supreme for the company and top-level managers from other countries are not privy to classified information.

BAE has a similar arrangement with Australia, which has become the largest defence company. India and BAE must sign a similar agreement, said Scopes.

With this set-up, the issue of technology transfer due to any international restrictions will not arise as the aim here is to create technology based in India. Another advantage is building a local supply chain, which will eventually become a part of global supply chain, will address self-sufficiency issues, he said. It would also allow BAE to "become part of the landscape" in India's defence market, he added.

BAE has a global spread with its "home markets" in the US – which accounts for 59 per cent of its revenue — Australia, Sweden, Saudi Arabia and South Africa. Last year, $1 billion was invested in Australia. This shows BAE's desire and willingness to make large investments, he said. It is also ready to work with Indian firms, PSUs and Defence Research Development Organisation. With $1.6 billion spent on R&D every year, there is scope for collaboration with the DRDO and IITs.


BAE Systems May Set Up Export Base in India | India Defence
 

shchinese

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after seeing how russians managed to double the price of the aircraft carrier again and again, of course foreign companies would like to follow the path and do more business with india.

in China there is one old saying to describe it - 此处人傻钱多,速来。
which literately means "there are a lot of stupid people and easy quick money, please just come ASAP".
 

uday

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Don't speak about your Chinese crap. I know your are jealous...that's obvious...
See how foreign defense wants to invest in india (and export) and they are not talking about investing in China.
They very well know the standards of the products that are made in China!!!
put old saying "此处人傻钱多,速来。" in your A**...oops i mean Arm!!!
 

metalfalcon

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Everyone wants to get a share from Indian Huge Defence Budget.

India is attracting all the Arms dealers around the Globe.
 

duhastmish

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Heart lets not make it - indo pakistan bashing thread, Pakistan is spending their share and they are getting what they want -we like it or not, and we cant (shouldnt)stop them either.
Any ways BAE will benefit from this alot, and so will india, since we get jobs and bae get cheap labor and potential clientele in india.
 

shchinese

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you can't deny the fact that it is just each to get money from Indians.


you sign the contract with India.
stop working a few months later, require to re-negotiate the deal.
you get the price doubled.
stop working a few months later, require to re-negotiate the deal.
you get the price doubled.
stop working a few months later, require to re-negotiate the deal.
you get the price doubled.
you delivery the product.
 

uday

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it's manufacturing and export not coping from others...lol!!!
 

shchinese

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it's manufacturing and export not coping from others...lol!!!
you paid 300% of the contract price and you are going to pay more. that is the fact you can't deny.

copying? how about our WS-2D which can hit New Delhi from our border? copied from who?
 

uday

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that's aircraft carrier dude...not a fighter jet to copy and manufacture!!!
and you very well know we are manufacturing our own AC...not like china!!!
our kids can make kites which can reach your borders too (when the thread got cut) lol...tell your stories to kids they'll nod to what ever you say!!!
 

indiatech

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you paid 300% of the contract price and you are going to pay more. that is the fact you can't deny.

copying? how about our WS-2D which can hit New Delhi from our border? copied from who?
Nice to see you crying and shouting for what india pays. as if you are loosing from your own pocket. Keep crying . You have a reason to cry and post crap.
we all know the reason.

Why dont you also put some pics of some beautiful chinese cities and post links about chinese IQ . Those are always your favourites in any posts. You are after india in such a way as if some indian boss has layed you off from your company. But nothing changes on how much you shout. I will be happy if you could open your mouth to this extent from china rather than from Australia. Well may be the commies will hang you.
 

shchinese

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Why dont you also put some pics of some beautiful chinese cities and post links about chinese IQ . Those are always your favourites in any posts. You are after india in such a way as if some indian boss has layed you off from your company. But nothing changes on how much you shout. I will be happy if you could open your mouth to this extent from china rather than from Australia. Well may be the commies will hang you.
do you have anything other than such personal attack crap? why not go back to school and have your manner improved first?

:cheers: btw: on Chinese military forums, countries have nicknames and india is called " country of bodies floating on the river".
don't click unless you want to see the real india.
 

indiatech

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do you have anything other than such personal attack crap? why not go back to school and have your manner improved first?

:cheers: btw: on Chinese military forums, countries have nicknames and india is called " country of bodies floating on the river".
don't click unless you want to see the real india.
there you go. the real one. your thinking will always be as small as your eyes and your head and as narrow as your a**. You will never ever have the big indian heart. you suck.
 

shchinese

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there you go. the real one. your thinking will always be as small as your eyes and your head and as narrow as your a**. You will never ever have the big indian heart. you suck.
big indian heart?

30 years after the start of the arjun project, you still refuse to acknowledge the failure of arjun, that is the big indian heart?

30 years after the start of the LCA project, you still refuse to acknowledge the failure of LCA, that is the big indian heart?

60 years after your independence, you still fail to make your female literacy rate 75+%, that is the big indian heart?


the BIG Chinese heart is shown when we stopped our failed J-9 fighter project.

the BIG Chinese heart is shown when we called our centralized economy a total failure and started market economy.
 

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