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The Telegraph - Calcutta (Kolkata) | Opinion | More than just a dumping ground
One of the most visibly high-profile and lucrative arms bazaars today happens to be India. The Big Boys of Europe (Russia included) and the United States of America feel happy to see in India a potential market of military equipment worth $50 billion over the next 10 years, and an expected $100 billion in the next 20 years.
The ‘mother’ of all deals, however, is that for the 126 Multi-Role Combat Aircraft, reportedly worth almost $11 billion. Expectedly, therefore, all top six companies — America’s Boeing, France’s Dassault Aviation SA (Rafale), America’s Lockheed Martin Corporation (F-16), Russia’s MiG-35, Sweden’s Saab JAS-39 Gripen and the EADS’s Eurofighter Typhoon — are competing with one another to clinch the deal.
One can well guess what is there in store for the one ‘victor’ and the five ‘vanquished’ once the government of India chooses the type of aircraft for its air force from amongst the six players vying for the deal. There is every possibility of the closure of those plants that fail to get the Indian order, as conventional military hardware markets all over the world have shrunk dramatically. But India being a compulsive big-ticket buyer, all foreign sellers of fighters are camping in New Delhi to woo the potential mega customer.
Perhaps the smartest seller so far has been America’s Boeing Company. Reportedly, the Boeing is to reinvest $640 million in India as part of its offset obligations. But many questions remain unanswered — will the Boeing’s planned investment upgrade indigenous technology? Or will Boeing remain content with asking Indian entrepreneurs to manufacture and copy a few non-technical and non-sensitive inventories such as the fuselage, doors, windows, galleys and tyres? One is not too sure as yet because if Barack Obama’s recent utterances are to be considered, “outsourcing” is anathema to him. And offset programmes of the government of India might be interpreted by American hardliners as outsourcing.
Boeing, however, was reportedly always “confident of securing export orders and the US Navy had sought international partners to share development of P-8A.” American companies (especially Boeing), consider India to be an important market — “We are here for the long haul,” declared an official of the company.
From India’s perspective, however, some puzzles remain. Serious defects had occurred and recurred in the F/A-18 Super Hornet programme. This spells trouble both for India and the USA. If a high-tech aircraft sold to India is found defective, then India — which has till date never produced the likes of F-4, F-5, F-15, F-16, F-18, F-22 and F-35 — certainly cannot be expected to repair or replace an aircraft that even the Americans today find hard to maintain.
It might be useful for India to emulate the Chinese in this regard — “Give us the latest technology first, then only we will take your hardware.” India must get the best stuff for itself, and should not be used as a dumping ground for obsolete technology.
The Union defence minister, A.K. Antony, constantly harps on the “need of high level of indigenisation in defence sector”. One-way traffic of sale and purchase could be transformed into ‘cooperate and produce’ between equal partners. The existing imbalance has led to inequalities in India’s arms acquisition programme. Choose the best and chase the quality.
One of the most visibly high-profile and lucrative arms bazaars today happens to be India. The Big Boys of Europe (Russia included) and the United States of America feel happy to see in India a potential market of military equipment worth $50 billion over the next 10 years, and an expected $100 billion in the next 20 years.
The ‘mother’ of all deals, however, is that for the 126 Multi-Role Combat Aircraft, reportedly worth almost $11 billion. Expectedly, therefore, all top six companies — America’s Boeing, France’s Dassault Aviation SA (Rafale), America’s Lockheed Martin Corporation (F-16), Russia’s MiG-35, Sweden’s Saab JAS-39 Gripen and the EADS’s Eurofighter Typhoon — are competing with one another to clinch the deal.
One can well guess what is there in store for the one ‘victor’ and the five ‘vanquished’ once the government of India chooses the type of aircraft for its air force from amongst the six players vying for the deal. There is every possibility of the closure of those plants that fail to get the Indian order, as conventional military hardware markets all over the world have shrunk dramatically. But India being a compulsive big-ticket buyer, all foreign sellers of fighters are camping in New Delhi to woo the potential mega customer.
Perhaps the smartest seller so far has been America’s Boeing Company. Reportedly, the Boeing is to reinvest $640 million in India as part of its offset obligations. But many questions remain unanswered — will the Boeing’s planned investment upgrade indigenous technology? Or will Boeing remain content with asking Indian entrepreneurs to manufacture and copy a few non-technical and non-sensitive inventories such as the fuselage, doors, windows, galleys and tyres? One is not too sure as yet because if Barack Obama’s recent utterances are to be considered, “outsourcing” is anathema to him. And offset programmes of the government of India might be interpreted by American hardliners as outsourcing.
Boeing, however, was reportedly always “confident of securing export orders and the US Navy had sought international partners to share development of P-8A.” American companies (especially Boeing), consider India to be an important market — “We are here for the long haul,” declared an official of the company.
From India’s perspective, however, some puzzles remain. Serious defects had occurred and recurred in the F/A-18 Super Hornet programme. This spells trouble both for India and the USA. If a high-tech aircraft sold to India is found defective, then India — which has till date never produced the likes of F-4, F-5, F-15, F-16, F-18, F-22 and F-35 — certainly cannot be expected to repair or replace an aircraft that even the Americans today find hard to maintain.
It might be useful for India to emulate the Chinese in this regard — “Give us the latest technology first, then only we will take your hardware.” India must get the best stuff for itself, and should not be used as a dumping ground for obsolete technology.
The Union defence minister, A.K. Antony, constantly harps on the “need of high level of indigenisation in defence sector”. One-way traffic of sale and purchase could be transformed into ‘cooperate and produce’ between equal partners. The existing imbalance has led to inequalities in India’s arms acquisition programme. Choose the best and chase the quality.
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