Zarvan
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India, unlike Israel, takes care of its defence industries.
by Arie Egozi
The Indian government’s “Make in India” policy will force the Israeli government to ease some of the restrictions that are applied to the export of sensitive defence technology.
The Israeli defence industries cannot meet the Indian demands fully. Sources in the Israeli aerospace and defence industries say that while India has been a big potential market for Israeli developed systems, future contracts will depend on the Israeli approval of including technology transfers and local production in India.
In recent years, some of the Israeli companies have signed joint ventures in India, but according to the sources this is not enough under the current policy.
Negotiations about delivering advanced Israeli systems like airborne radars, EW systems for future aircraft of the Indian air force are underway, but all the signs are that in order to conclude a deal Israel will have to agree to the Make in India policy.
The problem is that there is no Israeli policy regarding the Israel defence industries. Without it each potential tender is evaluated and the results depend on the leverage the involved industry has on the government.
“This situation is very bad for the Israeli industry and if nothing is changed it will become more complicated to sign new contracts in India”, a source related to the issue told i-HLS.
The situation has become more complicated since the U.S and many European countries have decided to achieve bigger chunks of the large Indian defence budgets.
http://i-hls.com/2016/12/make-india-policy-will-force-israel-flexible/
