The Finance Minister in a bold move to give impetus to the Aerospace and Defence Industry made some structural policy reforms in a bid to attract the big boys to come to an emerging market decisively moving away from an import regime to Make in India.

In the past, many OEMs; Lockheed Martin with their F 21 Program, SAAB with Gripen, Eurofighter manufactured by a consortium of Airbus, BAE Systems and Leonardo the erstwhile Finmeccanica; have been offering 100 % Transfer of Technology and shifting of the manufacturing lines to India.

The political leadership keeping our current inventory in mind need to go for an arranged marriage with the right potential partner with all the right offerings to boost the depleting inventory as well as the serviceability of the current inventory.

The increase from 49% to 74% should give confidence is on the table and the clause of 100% FDI on a case by case hopefully stays on. Now is the time for reaching out to Political Leadership to make this happen. The transfer of technology clause needs to be re-visited; no one is giving away the golden goose for a pittance.

In the Aerospace domain components and airframe are capabilities that have been developed over the years. The drawback is the MRO of the engines. The Mirage engine M 53 -5 P2 is still going back to France for repairs at a huge cost.

Original post:

Raising the FDI cap and other incentives in Aerospace and Defence Industry Challenges ahead - - Defence Aviation Post