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Israelidefenceexports to India top $1 billion annually. Prime Minister Narendra Modi's maiden visit toIsraelis expected to give further push to defence ties. In an interview withSanjay Jog,Bharat Malkani, co-chairman of the FICCI committee on aerospace and defence explains the road ahead. Edited excerpts:
What are your expectations from Prime Minister Narendra Modi's Israel visit? How can the partnership with Israel be extended?
There are no direct numbers available with me, but the trade in defence co-operation between the two countries should be in the billion dollar range. India has a number of programs ongoing with Israel especially in aerospace and land systems.
The United States of America is perhaps the single largest supplier of military hardware to India. Having said that, Israel has many technologies that India needs and these are available for transfer. Cost competitiveness is a secondary consideration in technology transfer as the cost of development is much higher and comes without the guarantee of success.
Israeli companies have in the past showed their willingness to transfer technology unlike other companies. This can be a huge advantage for Indian companies.
What about collaboration in electronics, missile technology and intelligence?
Israeli companies need to cooperate with the Indian private industry and bring products to the Indian MoD (ministry of defence) under the PM's 'Make in India' vision. There is a need to move away from traditional DPSU (defence public sector utilities) partnerships. This will yield tangible results in lesser time.
From an industry viewpoint, limitations do not exist. The potential is huge. It has been historically dominated by DPSUs, which have done an admirable job in the past. However, with the passage of time their ability to deliver a broad spectrum of products have been challenged.
Israeli companies also need to understand these changing dynamics of the Indian economy. The ability to invest and move with agility is with the Indian MSME's.
How can Israel become a part of the ‘Make in India’ initiative?
By investing their knowledge and money in the Indian industry. FDI of upto 49% is now permissible for foreign companies. Once money is invested they also bring in much needed jobs into this sector.
In any event the Indian market is so large that economies of scale are available from domestic consumption alone and India can be an excellent high technology and low cost producer for Israeli exports to other countries as well.
Technology transfer by Israeli cos can be a huge plus for India: Bharat Malkani | Business Standard News
What are your expectations from Prime Minister Narendra Modi's Israel visit? How can the partnership with Israel be extended?
There are no direct numbers available with me, but the trade in defence co-operation between the two countries should be in the billion dollar range. India has a number of programs ongoing with Israel especially in aerospace and land systems.
The United States of America is perhaps the single largest supplier of military hardware to India. Having said that, Israel has many technologies that India needs and these are available for transfer. Cost competitiveness is a secondary consideration in technology transfer as the cost of development is much higher and comes without the guarantee of success.
Israeli companies have in the past showed their willingness to transfer technology unlike other companies. This can be a huge advantage for Indian companies.
What about collaboration in electronics, missile technology and intelligence?
Israeli companies need to cooperate with the Indian private industry and bring products to the Indian MoD (ministry of defence) under the PM's 'Make in India' vision. There is a need to move away from traditional DPSU (defence public sector utilities) partnerships. This will yield tangible results in lesser time.
From an industry viewpoint, limitations do not exist. The potential is huge. It has been historically dominated by DPSUs, which have done an admirable job in the past. However, with the passage of time their ability to deliver a broad spectrum of products have been challenged.
Israeli companies also need to understand these changing dynamics of the Indian economy. The ability to invest and move with agility is with the Indian MSME's.
How can Israel become a part of the ‘Make in India’ initiative?
By investing their knowledge and money in the Indian industry. FDI of upto 49% is now permissible for foreign companies. Once money is invested they also bring in much needed jobs into this sector.
In any event the Indian market is so large that economies of scale are available from domestic consumption alone and India can be an excellent high technology and low cost producer for Israeli exports to other countries as well.
Technology transfer by Israeli cos can be a huge plus for India: Bharat Malkani | Business Standard News
