100% FDI in defence to create 2 million jobs: An Assessment

[kbd-raaf]

I dont agree with considering Defence Sector as another manufacturing sector. Technology Transfer should be monitored vigorously and make sure we do not become hub for nut n bolts.

It's going to work like this.

49% cap if the relevant companies don't transfer any technology.
74% cap if technology is brought in.
100% if CRUCIAL technology is brought in. (cutting edge stuff).

I'm willing to bet 80%+ of the investments will be in the 2nd category with most of the rest in first and very few sitting in the final.

 

[JayAtl]

I dont agree with considering Defence Sector as another manufacturing sector. Technology Transfer should be monitored vigorously and make sure we do not become hub for nut n bolts.

why can't you have both. what is wrong with becoming a hub for manufacturing. I don't get this from some of you...

 

[HRK]

No Read it again dear
India accept and Invest both and Pakistan only accept that's what i was trying to say their .

plz support your claim with DATA ....

 

[Indian Jaat]

plz support your claim with DATA ....

LOL i am just kidding on response to your this line are you taking this seriously ??

Would india welcome Pkistani investment in this sector ....

 

[HRK]

LOL i am just kidding on response to your this line are you taking this seriously ??

no i am not getting serious just trying to troll ....

Koi thread hi nahi mil raaahi trolling ka liya ......

 

[Indian Jaat]

no i am not getting serious just trying to troll ....

Koi thread hi nahi mil raaahi trolling ka liya ......

Me aaj saare din se laga hua hu or tu kehta hai thread nahi mil rahi
Yeh try maarle
Eyeing Pakistan and China, Modi bolsters security team

 

[jha]

why can't you have both. what is wrong with becoming a hub for manufacturing. I don't get this from some of you...

Simply because of the sensitivity involved. If both happen then it will be the best outcome.

 

[JayAtl]

Simply because of the sensitivity involved. If both happen then it will be the best outcome.

sensitivity involved? what does even mean... what sensitivity makes having the opportunities undesirable?

 

[jha]

sensitivity involved? what does even mean... what sensitivity makes having the opportunities undesirable?

So there is no sensitivity involved with production of defence equipments..?

 

[sancho]

Went through some older reports on the production shares of Rafale and found this article about Samtel, which is quiet interesting in this context as well, what really is important:

Samtel to supply IRST for IAF Rafales

...“Thales plans to offer the IRST to the IAF on a ‘Buy and Make (Indian)’ basis. This category of procurement (specified in the Defence Procurement Procedure of 2011, or DPP-2011) requires an Indian partner to absorb critical, high-end technologies and develop capabilities within India. Thales has told the IAF that Samtel Thales Avionics would do 50 per cent of the design and development work in India,” Kaura said...

...Samtel Thales Avionics will start by building Helmet Mounted Displays according to blueprints provided by Thales. But Samtel intends to absorb Thales’ HMD technology quickly, by setting up a Centre of Excellence for this purpose.
We will absorb end-to-end knowledge of the system, and develop design capabilities within two years. And Thales has agreed to this,” explained Kaura...

..:: India Strategic ::. DefExpo 2012: Samtel to supply IRST for IAF Rafales


On the other side:

RIL-Dassault to make business jets

...The joint venture of Dassault and Reliance will determine the shape of the joint venture of the French firm with Hindustan Aeronautics Ltd (HAL) to make the Rafale fighter jets. It will decide which components of the Rafale Dassault will manufacture after concluding talks with the defence officials. Sources said Dassault was once keen to make most of the parts and have control over the joint venture while limiting the role of HAL to just assembling the jets.
However, the government wants HAL to have a greater role so that the Indian engineers are able to absorb the technology better...

...The government last year changed its defence offset policy to allow technology transfers and research collaboration to offset the splurge on jet fighters, artillery guns and submarines.

RIL-Dassault to make business jets


An increase in FDI is needed, but not only with the aim of creating a manufacturing industry to let foreign vendors outsource it to India and reduce costs for their benefits and that only because the election campaing said they will create jobs. The defence sector is a strategic sector and we need know how and critical techs to improve it, to someday be capable of develop things in India only and be really less dependent of imports!
However, giving foreign vendors the control over JV's clearly will hamper our the gain we could get, with the result of degrading our industry to basic parts only and that can't be the right way for Indian defence at least.

Btw, with the huge number of engineers that are coming from our universities every year, we don't need low end manufacturing jobs anyway, but jobs where they can use their know how and gain experience too. They will be the base of Indias future technical capability and that needs to be promoted, not making India a manufacturing hub for the benefit of some companies!