Zee Media Bureau
Asia's premier air show, "Aero India", took off Wednesday with global armament majors eyeing the multi-billion dollar Indian defence market, seeking to align with the "Make in India" campaign of the Narendra Modi government.
Inaugurating the show, the Prime Minister Narendra Modi said defence output will double if domestic procurement goes up from 40 percent to 70 percent in next five years.
He further added that the developing defence system is at the heart of our Make in India programme.
Modi is the second Prime Minister to inaugurate the event after H D Deve Gowda in 1996. PM also stressed on improving our defence preparedness.
In India, the defence industry in the government sector alone employs nearly 200,000 workers and thousands of engineers and scientists. They produce an output of nearly 7 billion dollars annually. It also supports a very large pool of small and medium enterprises.
PM said that our defence industry in private sector is still small. But, it already employs thousands of people. This is despite the fact that nearly 60 percent of our defence equipment continues to be imported. And, we are spending tens of billions of dollars on acquisitions from abroad.
There are studies that show that even a 20 to 25 percent reduction in imports could directly create an additional 100,000 to 120,000 highly skilled jobs in India.
If we could raise the percentage of domestic procurement from 40 percent to 70 percent in the next five years, we would double the output in our defence industry. We have raised the permitted level of Foreign Direct Investment to 49 percent. This can go higher, if the project brings state-of-the art technology, Modi added.
We have permitted investments up to 24 percent by foreign institutional investments. And, there is no longer a need to have a single Indian investor with at least a 51 percent stake. Industrial licensing requirements have been eliminated for a number of items. Where it is needed, the process has been simplified. We are expanding the role of private sector, even for major platforms. Our goal is to provide a level playing field for all.
Over 300 foreign firms along with 54 ministerial and other high-level delegations from several countries are taking part in this year's event, said to be the largest ever air show to be hosted so far in India.
The US with 64 companies will have the largest presence at the show in which 33 other countries are taking part. Behind the US is France with 58 companies, UK 48, Russia 41, Israel 25 and Germany 17, organisers said.
Seven of the 11 foreign military aircraft on display will be American - two F-15C Eagles, two F-16C Fighting Falcons, one Boeing KC-135 tanker, one C-17 Globemaster III and a P-8A Poseidon maritime surveillance aircraft.
Three Rafale fighters of French giant Dassault- shortlisted for acquisition by the IAF - will fly aerobatics displays. Negotiations over the deal for 126 aircraft are facing rough weather with efforts underway to resolve it.
India's Light Combat Aircraft "Tejas" will be participating in the formation flight display, Defence Research and Development Organisation officials said.
HAL has said Advanced Light Helicopter - Weapon System Integration (ALH-WSI) Rudra, ALH Skid Utility, LCH and the first series production Light Combat Aircraft (SP1) will be on static display.
In another significant dimension, a high level Israeli delegation, including senior Ministry of Defence officials, led by Defence Minister Moshe Ya'alon will be in attendance at the show, preceding their high-level meetings in Delhi, as the two countries warm upto to a new level of relationship.
Israel ranks among India's top three defence equipment suppliers after US and Russia.
With the Modi government seeking to give a greater thrust to its "Make in India" campaign, a Defence manufacturing investors summit and global CEO's conference, to be chaired by Defence Minister Manohar Parrikar, is also being held.
Organisers are also gearing up for the record turnout during the five day event expecting over three lakh visitors this time, almost double the figure of 2013.
Bengaluru has come under thick security blanket ahead of the Prime Minister's visit as also the hotels where foreign delegations are staying in large numbers.
The event slated as one of the largest premium air shows in Asia, will see participation by over 600 firms including 295 Indian and 328 foreign, officials said.
The number of aircraft participating in static and air displays is tentatively 72. Indian Air Force's Sarang Team and air display teams from Sweden, UK, Czech Republic and open sky jump by USA Special Forces will dazzle the Bengaluru skies with their daredevil aerobatics.
With agency inputs
