US and European defence firms backed Indian Prime Minister Narendra Modi’s military modernisation drive at a defence exhibition on Friday, despite a lengthy procurement process running into years and limited funds.
Airbus SE and US-based Lockheed Martin Corp and Boeing Co. are eying multi-billion dollar deals under Modi’s aim to upgrade an ageing fleet of aircraft and enhance local arms manufacturing to cut imports.
“I feel encouraged overall,” Anand Stanley, President and managing director of Airbus India and South Asia, told Reuters.
“Every year the government is doing capital allocation. They are spending,” he said. The military is also looking to buy submarines, warships and battlefield communication systems. But these have made little headway.
Airbus is offering to set up an assembly line in India in partnership with the Tata Group to produce the C295W military transport aircraft as a replacement for Indian Air Force’s Avro fleet. The 120 billion rupee Avro replacement programme has been in the pipeline for almost a decade.
Airbus on Thursday signed a memorandum of understanding (MoU) with India’s Adani Aerospace and Defence, part of the diversified Adani Group, for aircraft services in India and South Asia.
Boeing, which has pitched its F/A-18 Block III Super Hornet fighter for the India air force and navy and is competing with Lockheed Martin’s F-21, said it plans to push India’s armed forces’ drive for odernisation through a suite of five products – the Super Hornet, KC-46 tanker, P-8I aircraft, AH-64E Apache and CH-47(I) Chinook helicopters.