The next time you say outsourcing is booming in India, you could be referring to guns and missiles.
Foreign defence production firms that have descended here for the defence exposition, DefExpo, say India could be a major hub for manufacturing cheap yet superior defence products.
Some of them are keen to share technology with, and even invest in, local firms to develop products and help them to market these products worldwide.
Firms from countries such as Israel, Poland, Switzerland, the Slovak Republic and Belgium have either entered into collaborations with Indian companies, both private and government-promoted, or are looking for tie-ups.
Be it the development of hand-held thermal night-vision devices by Bharat Electronics Ltd, or the Spike missile, which can be aborted in flight, by the Defence Research and Development Organisation, or fast patrol boats by the Goa-based GSL, or even the light combat armoured vehicles made by Mahindra & Mahindra, foreign companies want to be a part of the action.
Says Major General (Retd) Yossi Ben-Hanan, director, SIBAT (foreign defence export) of Israel, "We want to produce in India, not package."
Adds GE International Inc's senior vice-president, government and defence relations, Allan R Tarkenton: "We are looking at several products that can be developed and manufactured in India. It definitely works out cheaper to be here."
So, when Israel Aircraft Industry transferred avionics technology to Hindustan Aeronautics Ltd for the latter's Dhruv range of helicopters, it saw a business opportunity as well. It soon entered into an agreement to jointly market the helicopter across the globe.
According to Shimon Eckhaus, corporate vice-president of Israel Aircraft Industry: "This is an outstanding helicopter which can compare with the best in the world. We have decided to market this product worldwide."
Adds Ben-Hanan: "Some time ago, Tadiran Com of Israel shared technology for a radio set used by the armed forces with the Bangalore-based BEL. Now, BEL has developed a radio at a lower cost that is finding its way into international markets. Around 50 per cent of the product is now being made in India. Be assured the local content will only grow."
The foreign firms say production in India will make them more competitive in the global market, and they are also confident about the quality of the product being world-class.
An issue that could worry foreign defence production majors is the protection of intellectual property.
But says Hanan, "BEL, or any other Indian partner, has been more secretive than any of us."
Work has begun on. . .
- Development of hand-held thermal night-vision devices.
- Production of fast patrol boats.
- Production of helicopters.
- Development of the Spike missile.
- Development of light combat armoured vehicles.
