The effective implementation of offset policy can facilitate the absorption and indigenisation of foreign aeronautic technologies that accrue to the country by way of offset deals. In doing this, the Govt wishes to emulate the success of Brazil, Israel and Spain.
In India, over the last 16 years, India has seen more engineering and R&D investments in aerospace than the US or Europe. In Bangalore, Honeywell Technology Solutions has set up an engineering facility with over 5,500 engineers, while GE's Jack Welch Technology Centre has an extensive research lab with over 3,000 engineers.
Airbus is setting up an Airbus Engineering Center India (AECI) facility, which will hire 200-plus engineers of its own, and more than 2,000 through its partners. According to a Nasscom-Booz Allen Hamilton report, there will be a $40 billion opportunity for the offshore engineering industry worldwide by 2020. India is expected to have a 2-3 per cent share in the aerospace offshored engineering service. This amounts to $1.2 billion by 2010.
The government, on the advice of the Kelkar Committee, has opened up the aerospace industry to the private sector. State Govts are doing their bit by setting up special economic zones (SEZs) for the aerospace industry. These include:
• The Rs 3,000-crore Aerospace and Precision Engineering Special Economic Zone to be set up at Adibatla, Ranga Reddy district in Andhra Pradesh
• The specialised aerospace park of around 1,000 acres, proposed near the Bangalore International Airport;
• The 2,500-acre SEZ for the aerospace and avionics industry, proposed to be established in south Gujarat, close to the Delhi-Mumbai industrial corridor. This is likely to have a number of MRO facilities.
The cumulative value of the Indian defence market for the next five years is approximately Rs 180,000 crores (Rs 1.8 trillion), which makes it one of the most attractive in the world -especially, with the capital outlay for defence hiked this year to Rs 54,824 crores (Rs 548.24 billion), up from last year's revised estimate of Rs 41,000 crore (Rs 410 billion).
Indian companies are all set to supply in this market. Hero Motors plans to produce light aircraft at its 300-acre aerospace park in Madhya Pradesh in partnership with an unidentified European manufacturer.
The Tata group is keen to move into full-scale aircraft assembly and production in both the civil and military markets. The group has sought approval to set up an aerospace manufacturing facility on the outskirts of Hyderabad.
Tata has already signed deals with several International companies, including one to manufacture components for Boeing. It has taken a one-third stake in Italy's Piaggio Aero, while Israel Aerospace Industries (IAI) and Tata have signed a memorandum of understanding to establish a new company to develop, manufacture and support a wide range of defence and aerospace products, including missiles, UAVs, radars, electronic warfare systems and homeland security systems.
Mahindra & Mahindra, meanwhile, has signed deals with BAE Systems, and is jointly developing a five-seat light aircraft with the National Aerospace Laboratories. Larsen and Toubro (L&T) has formed a joint venture with the European EADS to develop high-tech defence electronics in Pune.
It is clear that A & D industry will act as a growth stimulant in coming years. However, to fulfill its potential, it must surmount challenges such as inadequate R& D investment, dispersed production centres, frequent change in regulations, and poor co-ordination amongst the different players.
Click to read the full Article:
In India, over the last 16 years, India has seen more engineering and R&D investments in aerospace than the US or Europe. In Bangalore, Honeywell Technology Solutions has set up an engineering facility with over 5,500 engineers, while GE's Jack Welch Technology Centre has an extensive research lab with over 3,000 engineers.
Airbus is setting up an Airbus Engineering Center India (AECI) facility, which will hire 200-plus engineers of its own, and more than 2,000 through its partners. According to a Nasscom-Booz Allen Hamilton report, there will be a $40 billion opportunity for the offshore engineering industry worldwide by 2020. India is expected to have a 2-3 per cent share in the aerospace offshored engineering service. This amounts to $1.2 billion by 2010.
The government, on the advice of the Kelkar Committee, has opened up the aerospace industry to the private sector. State Govts are doing their bit by setting up special economic zones (SEZs) for the aerospace industry. These include:
• The Rs 3,000-crore Aerospace and Precision Engineering Special Economic Zone to be set up at Adibatla, Ranga Reddy district in Andhra Pradesh
• The specialised aerospace park of around 1,000 acres, proposed near the Bangalore International Airport;
• The 2,500-acre SEZ for the aerospace and avionics industry, proposed to be established in south Gujarat, close to the Delhi-Mumbai industrial corridor. This is likely to have a number of MRO facilities.
The cumulative value of the Indian defence market for the next five years is approximately Rs 180,000 crores (Rs 1.8 trillion), which makes it one of the most attractive in the world -especially, with the capital outlay for defence hiked this year to Rs 54,824 crores (Rs 548.24 billion), up from last year's revised estimate of Rs 41,000 crore (Rs 410 billion).
Indian companies are all set to supply in this market. Hero Motors plans to produce light aircraft at its 300-acre aerospace park in Madhya Pradesh in partnership with an unidentified European manufacturer.
The Tata group is keen to move into full-scale aircraft assembly and production in both the civil and military markets. The group has sought approval to set up an aerospace manufacturing facility on the outskirts of Hyderabad.
Tata has already signed deals with several International companies, including one to manufacture components for Boeing. It has taken a one-third stake in Italy's Piaggio Aero, while Israel Aerospace Industries (IAI) and Tata have signed a memorandum of understanding to establish a new company to develop, manufacture and support a wide range of defence and aerospace products, including missiles, UAVs, radars, electronic warfare systems and homeland security systems.
Mahindra & Mahindra, meanwhile, has signed deals with BAE Systems, and is jointly developing a five-seat light aircraft with the National Aerospace Laboratories. Larsen and Toubro (L&T) has formed a joint venture with the European EADS to develop high-tech defence electronics in Pune.
It is clear that A & D industry will act as a growth stimulant in coming years. However, to fulfill its potential, it must surmount challenges such as inadequate R& D investment, dispersed production centres, frequent change in regulations, and poor co-ordination amongst the different players.
Click to read the full Article:
India's Defence & Aerospace Industry Update
Brigadier(Retired) Sukhwindar Singh
http://www.indiandefenceindustry.com/
(An e-Hub for Indian Defence Industry Ecosystem)
Credit: USIBC and Its News Agencies.
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