Old Europe And 'Make In India'

Analyses India's evolving defence relations with the European nations and how determined Narendra Modi government is to end India's status as the world's number one defence importer through Make in India initiative.

- Claude Arpi

The theme of Aero India, organised at Yelahanka Airport in Bengaluru in February 2015, was 'Make in India'. How many amongst the 700 participating foreign firms from 49 countries (particularly European) realised that the world of arms sales would never be the same?

Big players had come to Bengaluru with impressive armadas of equipment (and staff), hoping that business would continue as in the past. Soon most became aware that the time had come to take a fresh look at future India’s requirement in aerospace, defence, civil aviation and defence manufacturing. Narendra Modi’s ‘Make in India’ flagship alters all previous rules of the game.

The Prime Minister made it clear that India wanted to “build an industry that will have room for everyone public sector, private sector and foreign firms.” In others words, no more State monopolies; Indian private sector could take part in the new stakes.

There is no doubt that the distance to be travelled will be long, but the Modi Government seems determined to end India’s status as the world’s number one defence importer; the Prime Minister announced that 70 per cent (from the current 40 per cent) of hardware will be manufactured domestically by 2020. April 2015 was perhaps a turning point. Till that time, discussions were still on between France and India to buy 126 Rafale planes from Dassault (108 planes to be manufactured by HAL in Bengaluru).

But the negotiations had reached a dead-end. Modi's decision to purchase 'off-the-shelf' was a quick and smart move. He brought onto the negotiating table, the IAF's 'critical operational necessity', while dropping the Medium Multi-Role Combat Aircraft (MMRCA) framework.