PARIKRAMA
SENIOR MEMBER
- Joined
- Jan 5, 2014
- Messages
- 4,871
- Reaction score
- 185
- Country
- Location
What he means is using inhouse developed portions or more indigenous content in the def programs. TOT programs would cost untill we reach economies of scale and master the % of indigenous content absorption into main products also efficiently till we reach the Break even units. lIcence manufacturing is also costly as we do need to pay royalties.Good thinking by Namo and You but question is it possible to slash down Defence budget upto 50% or just 50% foriegn exchange saving. TOT manufacturing is not always benificial and sometimes more costly.
@MilSpec Your take Do you think cost could be lower upto 50%
Consider Su30 produced in Russia at say approx 250 crs versus double price in Nasik plant . True it integrates many things and has good indigeneous content. But if we remove those israeli and other parts and compare a russian produced jet with MKI with indignenous effort we may see at best a parallel pricing with a difference of 10-20% permium except royalties. But the best part is that premium is getting recycled back to indian economy and that helps us much more any given day.