HUMA SIDDIQUI Posted online: Thursday, February 17, 2005 at 1314 hours IST Updated: Thursday, February 17, 2005 at 1351 hours IST
New Delhi, February 17: India is poised to become a key outsourcing hub for global aerospace and missile companies as it has cheap and skilled engineers on offer.
Talking to Financial Express, director (exports), of France-based MBDA missiles systems, Jean Luc Lamothe said, “India with its skill base and projected economic growth is the preferred partner nation for MBDA due to its unique potential of becoming a defence industrial hub in the region. As such, there are extensive opportunities for collaboration with Indian industry, combining the company’s technology and skills base in weapons design, testing and integration developed over the last 50 years.
The company has recently submitted proposals for potential areas of joint technology research during discussions with Defence Research and Development Organisation (DRDO), said Mati Hindrekus, official spokesman of MBDA.
He added, “on one hand we will benefit from Indian software skills and the country’s lower cost base. On the other India will gain access to the world’s most advanced guided missile technology, which will give the nation a much greater degree of autonomy in developing its current and long term defence capabilities.”
Vincent Gorry, senior national executive of Paris-based enginemaker Snecma said the rare combination of a large pool of software engineers and quality suppliers is attracting foreign firms to Bangalore.
“In the aerospace industry, more and more software is increasingly being used. In India you can get both aerospace engineers and the IT guys and there is cost advantage,” he said.
He said the decision of Hindustan Aeronautics Limited (HAL) to get into the civilian aircraft market by making doors for Airbus and Boeings will trigger a chain of suppliers.
According to Edward Gordon, manager of offset programmes of Northrop Grumman, a US-based defence companym, “India’s aerospace industry is at the take-off stage.”
“Companies like HAL have come a long way. As a result the first-tier suppliers look very promising,” said Mr Gordon, whose company is pitching the sale of its E-2C Hawkeye 2000, an airborne early warning, command and control aircraft, to India.
The combination of IT and aerospace has given India the edge. More than 1,400 companies have set up base in Bangalore, India’s technology capital, and international software companies are using the base for their outsourcing operations.
An indication of the growing importance of Bangalore’s aerospace potential can be gauged from the fact that during a recently concluded Aero India 2005 air show — billed as the largest in South Asia — deals worth more than $1.2 billion were signed between Indian and foreign aerospace firms.
The deals ranged from aircraft purchases by Indian budget carriers from Airbus and Boeing, to joint manufacture of missiles and engine parts.
Company officials from Lockheed Martin said the cordial relations between India and the US would lead to increased defence collaboration.
“Lockheed Martin will look for allies and partners in India. These will include IT companies and Indian aviation companies in the public and private sector,” said Dennys Plessas, the company’s regional vice-president.
“Indian aerospace firms are internationally competitive and more customer-friendly. They have that can-do attitude. For our cost-effectiveness is not about lowest price but the best value. There are areas of mutual interest and opportunities to be explored,” added Mr Gordon.
Tata Consultancy Services (TCS) and National Aeronautics Ltd (NAL) recently signed an MoU to offer solutions and services in the aerospace sector for the global market.
Both will offer complete end-to end solutions and services in the aerospace domain including design, testing, manufacturing and use of advanced computer-aided techniques.
