$35 billion for next DECADE

[Red.Indian]

Hyderabad,Dec 11(PTI):Indian aerospace industry is likely to purchase equipment worth USD 35 billion over the next ten years including aircraft, a top official said. Vivek Rae, Director General (Acquisitions) under the Defence Ministry said the Indian companies will get at least USD 10 billion worth of defence contracts under 'offset clause' that mandates any foreign company which secures Indian defence contract should outsource 30 per cent of the contract to Indian firms. "Indian aerospace industry will be making purchases worth USD 35 billion over the next ten years. Medium Multi-Role Combat Aircraft purchase itself will be about USD 15 billion," Rae told PTI on the sidelines of a seminar at Indian School of Business. The Defence Ministry has short-listed France's Dassault Aviation SA's Rafale and EADS' Eurofighter Typhoon for supply of MMRCA in April. Commercial bids from the two short-listed vendors were opened on November 4, marking the culmination of almost decade-long hunt for India's new mainline fighter. He said the Government had already signed Rs 18000 crore ((USD 3.6 billion) worth of defence contracts and the Aerospace contracts will be worth around Rs 14,000 crore. These contracts are expected to be executed in the next 6-7 years, Ray added.

Aerospace ind purchases likely to be worth USD 35 billion, IBN Live News

 

[Abingdonboy]

I'd say this was a VERY conservative estimate. $15-20BN is going to be spent on MMRCA alone. You add up the follow on C-17 order (orders upto 25 in total likely), MRTA, a2a refueller, UPG "SUPER" MKI, Chinnok, Apache (both helos expected to have signifacnet follow on orders), FGFA/PAK-FA, AMCA, LCA MK II, AWACS (DRDO+ Phalcon), Follow on order for C-130-30js (highly likely total number of C-130js in IAF service may exceed 25), LUH, IMRH, LCH, ALH WSI, UAV, UCAV, INTEL planes etc

(obviously this doesn't include things IAF will get that we can't for see or imagine as of yet)


And these are just the aerial platforms not including the cost of spares, setting up infrastructure, training, weapons packages, integration and all the other panthanalia that goes along with such inductions.


The figure stands at >$100 BN in all likelihood. With a rapidly growing economy and a sizeable increase in the defence budget yea-on-year, IAF is likely to spend like crazy this decade.

 

[Skull and Bones]

$35 billion for a decade seems to be less.

 

[reminder]

FGFA will come after 2018,i guess it is not included in this 35 B $. AMCA is under development.....

 

[RoYaL~GuJJaR]

$35 billion for a decade seems to be less.

True mate!! $35 billion for 10 years?? seems low to me!

 

[Abingdonboy]

FGFA will come after 2018,i guess it is not included in this 35 B $. AMCA is under development.....

I believe (AFAIK) a decade is ten years and the decade the article is referring to is 2012-22 so FGFA/PAK-FA in 2018 will be paid for THIS decade- as these deals go most likely far in advance of delivery in 2018

 

[reminder]

I believe (AFAIK) a decade is ten years and the decade the article is referring to is 2012-22 so FGFA/PAK-FA in 2018 will be paid for THIS decade- as these deals go most likely far in advance of delivery in 2018

What im saying 35B $ is not fixed. It will raise up Year by Year.

 

[Red.Indian]

True mate!! $35 billion for 10 years?? seems low to me!

no need to worry..........Mod Can increase the decence spending at any stage of decade,as per requirement allthough they r not bounded by any restrictions......

 

[kawaraj]

and 30 billion will go to corrupted officials' pocket, that will be funny.