Make in India is the new “normal” to do business with India

India recently completed its General Election & the incumbent party BJP under the leadership of PM Narendra Modi was voted back to power by a resounding majority.

As per media reports, The 114 fighter project is crucial because the 36 Rafales and the indigenous Tejas Light combat aircraft will not make up for the fast depleting numbers. The Rafale is among the seven contenders for the 114 fighter projects worth over INR 1.25 lakh Cr. under the defense ministry’s “Strategic Partnership” Model.

The 36 Rafale Jets armed with deadly meteor & scalp missiles are to be delivered in September 2019 – April 2022 timeframe to constitute two squadrons. The Rafale is among the seven contenders for the 114 fighter project worth over INR 1.25 Lakh Cr. under the defense ministry’s Strategic partnership model. The others are F/A-18 & F-21 (Upgraded F-16), Mig-35 & SU-35 (Russia), Gripen – E (Sweden) & Eurofighter Typhoon.

 

The Tata-Airbus joint venture for 56 twin-turboprop tactical C-295 aircraft is almost final now. The extensive trials & CNC (Contract Negotiations Committee) are over now. DAC this month will take up the project to approve certain deviations before sending it to the cabinet committee on security for the final nod, as per the media reports.

The project is initially valued at INR 11,929 Cr. was meant for the Indian Private sector to enter aerospace manufacturing despite stiff PSU resistance. The C-295 planes will replace the IAF’s old Avro aircraft first inducted in the early 1960’s. While Airbus will supply the first 16 aircraft, the remaining 40 will be built in India within eight years. The C-295 has a higher safety margin for flying over oceans & mountainous terrain. It has a very high single engine drift down altitude and can maintain 17000-18000 ft altitude. The aircraft will also find buyers in the civil aviation sector, as per media reports.

 

Now let’s understand how this make in India initiative is creating waves all around the world. Indian government under the leadership of PM Narendra Modi has been instrumental in attracting a lot of foreign investment in India. The High Speed Bullet Train Service between Mumbai & Ahmedabad is a staggering example of the same with an estimated cost of INR 1.1 lakh Cr.  in which only 20% components will be imported from Japan and the rest will be manufactured in-house. Also make in India metro coaches have been exported to Australia for its Metro Service in the city of Sydney. Automobile majors have invested in India to cater to the Asian markets and some notable ones are KIA Motors, BMW and so on.

The Wayne Burt – GE Aviation has its special purpose factory located in the Industrial Hub of Chennai in collaboration with GE Aviation. The investment value is $25 Mn and the expected revenue in the next 3 years is $50 Mn. Also HAL (Hindustan Aeronautical Limited) has begun talks with Russia’s Irkut Corporation to transfer technology of 332 components of SU-30MKI fighter aircrafts under the make in India program. US aviation major Boeing has decided to assemble one of its two helicopters Chinook heavy-lift & Apache attack types in India.

 

The announcement came after US and Indian officials in September signed two contracts for the purchase by the Indian Air Force (IAF) of 22 AH-64E Apache attack helicopters, and 15 CH-47F Chinook multi-mission heavy lift helicopters. In December 2015, Russia’s Rostech State Corporation tied up with HAL for manufacture of at least 200 Kamov 226T light helicopters to replace the ageing fleet of Cheetah & Chetak.

 

Indian Government is opening its doors to foreign companies to set up shop and trying to acquire the technology and involving the local manpower to develop world class machines which would be exported to willing clients across the world specially APAC & ASEAN countries. This will ensure that India becomes a manufacturing giant in the ASEAN & APAC regions and the economic success story of India will be scripted across continents. This will also help India counter the Chinese aggression and can help in containing them economically, militarily & most important diplomatically. The Make in India initiative will help the world to create value additions to its products due to skilled & educated manpower available locally. With China posing a problem to the world order, India alternatively has emerged as a winner for the NATO allies & corporations looking for a safe investment heaven with open business policies & norms favorable for growth.

Hence owing to all the factors we could infer that “Yes, Make In India is the new normal to do business in India”.

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Story Conceived & written by

Sumit Peer, Founder Insourcing Multiplier

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