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Berlin Air Show: Defence, Diplomacy and Indian Beats

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Berlin. The gala opening of the International Aerospace Exhibition and Conferences – ILA 2008, on May 27, was preceded and succeeded by two rather small but significant side shows. India was participating in the event, popularly known as Berlin Air Show, for the first time in its 99-year old history, as a Partner Country.

In the event preceding the opening ceremony, Jet Airways took delivery of the seventh Airbus A330-200 in the presence of the German Chancellor Dr Angela Merkel and the visiting Indian Defence Minister AK Antony. Shortly after the inauguration, the Indian defence aviation major Hindustan Aeronautics Ltd signed an MoU with RUAG of Switzerland for the joint production of a new generation of Dornier-228 aircraft in Germany.

Indeed, the ceremony and other events defi ned the emerging nature and stature of the Indian civil and military aviation industries, its gradual but definite evolution from being a “buyer” to that of a “partner” in designing, developing and producing systems and platforms.

The tone for cooperation between India and Germany was set by the goodwill that already pervades in the Indian and German hearts. While the beat and rhythm were provided by the scintillating aerobatic display by the Sarang helicopter team of the Indian Air Force (IAF), the sound of music was literally added to the show by IAF’s Air Warriors Symphony Orchestra which played beautiful Indian and German music to the delight of everyone, every day for a week.

In fact, Dr Merkel made a detour to compliment the orchestra conductor, Wg Cdr Sandeep Puri, who was so engrossed that he did not initially notice the VVIPs behind him. A somewhat embarrassed Puri received applause from every one, including his own boss, Air Chief Marshal F H Major.

Mr Antony took the opportunity to make an important announcement: That the days of acquiring aircraft and systems by purchase alone were gone; any major deal that India makes now will involve Transfer of Technology (ToT) and co-production.

Speaking at the opening ceremony, which was attended by a galaxy of top brass of defence industries from across the world, Mr Antony said the Berlin Air Show provided an excellent opportunity to explore innovative cooperation options and arrangements, particularly in the areas of aviation, aerospace and defence.

He called upon the international aviation and defence majors to take advantage of the country’s expanding market by proactively seeking out industry partners in India. “The commitments made by some partners to establish production facilities in India or transfer of technology, point towards the opportunities that lie in horizon.”

Mr Antony said there is vast potential for cooperation between the defence industry in India and the industries in Germany, Europe and other nations, which would be mutually beneficial. “We need to identify this potential and enhance the levels of cooperation and I hope that our participation in ILA will act as a catalyst in this process.”

Giving a brief overview of India’s successful “development model’, Mr Antony said, India’s presence at the Berlin Air Show “signifies the progress the country has made in the six decades since Independence. Our steady growth, a buoyant economy and the national strengths which flow from our pluralistic democratic framework have given us a distinct place in today’s world. A strong industrial base, sophisticated research and development institutions, backed by a business environment which is conducive to trade and growth, provides vast opportunities for alliances and cooperation between our domestic industry and international partners.’

Referring to the defence production and procurement policies, the Indian Minister said that these had been designed not only to further develop indigenous capabilities and promote participation by Indian private sector companies but also to encourage codevelopment and co-production with international manufacturers.

Mr Antony took a walk around the exhibition ground with the German Chancellor Dr Merkel and also opened the India Pavillion. A large number of Indian companies – both public and private sector organisations showcased their defence related capabilities and products at the event.

The composite India Pavilion covering 1200 sq meters witnessed the participation of five Defence Public Sector Undertakings namely Hindustan Aeronautics Limited (HAL), Bharat Earth Movers Limited (BEML), Bharat Dynamics Limited (BDL), Bharat Electronics Limited (BEL) and Mishra Dhatu Nigam Limited (MIDHANI); the Ordnance Factory Board (OFB), the Defence Research and Development Organisation (DRDO), the Indian Space Research Organisation (ISRO) and five private defence companies – TATA, L&T, CADES, ACCORD, Saraswati Dynamics.

Indicative of the importance being attached to India, a seminar on “Opportunities in the Indian Defence Sector” was held on 28 May.

At a bilateral level, over the years, Indo-German relations have remained cordial and friendly. India was the first country after the Allied withdrawal to establish diplomatic relations with Germany in 1951 and was among the first few countries to have supported the cause of unification in the early stages.

Indo-German relations have made rapid strides in the last few years backed by a number of high level visits from both sides. The two countries signed an agreement on Bilateral Defence Cooperation in September, 2006. The agreement envisages exchange of views and cooperation on strategic defence issues i.e., Security and Military Policy, Arms Control, Disaster Relief, Defence Technology, and Procurement Procedures, etc. It also provides higher level of strategic partnership for co-development, co-production, joint ventures and transfer of technology.

Indeed, Mr Antony’s visit was aimed at taking the relationship a step further. India and Germany had signed an agreement on Mutual Protection of Classified Information on Defence related issues during the visit of German Chancellor Dr Angela Merkel to New Delhi on October 30, 2007.

This time, and in this backdrop, the two countries held bilateral talks on defence matters on May 26 with Dr Franz Josef Jung, the German Defence Minister assuring India that some technology transfer issues would be settled in India’s favour in the near future.

The two delegations discussed a wide range of measures to give further impetus to Indo-German cooperation as also the global and regional scenarios and threats the world had from terrorists and fundamentalists, particularly in parts of South Asia. The two counties shared a common perception.

The delegation accompanying the Defence Minister included Chief of Air Staff, Air Chief Marshal Fali Homi Major, Defence Secretary, Mr Vijay Singh, Secretary Defence Production, Mr Pradeep Kumar, DG Acquisition Mr SK Sharma, Advisor to Defence Minister, Mr Sundaram Krishna, and Joint Secretary (Exports), Mr Satyajeet Rajan.

Minister of State for Defence Production, Rao Inderjit Singh, also attended the Berlin Air Show from May 28 to June 1.

By all accounts, the prestigious Berlin Air Show was a great success. It attracted around 2,50,000 visitors over six days and saw contracts worth some five billion euros ($7.8 billion) sealed. It was a whirlwind tour of the Defence Minister to Berlin as his sojourn there was for less than 48 hours.

But his vision of the contours of a new business relationship between Indian and global defence majors continued to be the topic for discussion at several for a long after he had left.
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