Breaking: Indian govt allows 100 per cent FDI in defense and Civil Aviation Sector

[Echo_419]

It doesn't change much really EXCEPT, in theory, this means that there is no longer the requirement for a foreign OEM to tie up with an Indian partner and could instead set up 100% owned subsidiaries in India and thus there would be very very little skill or technology transfer to India.

This would seem to fall right into Boeing's hands as they were not willing to partner with an Indian company to produce the F-18 in India.*

However, if the MoD/GoI were to green light such a offer (for fighters) they would be incredibly foolish and short sighted as well as being incredibly disingenuous.


IMHO this move is not aimed at the fighter market at all but ground and naval systems that have been crying out for 100% FDI for a while now.


To be noted, 100% will only be sanctioned for the highest of tech, you can't bring 1970s tech to India and expect to be awarded 100% FDI.


* @randomradio permission for 100% FDI for Boeing would effectively undermine what you have been saying all along- that the GoI is trying to set up 2 rival INDIAN companies to HAL capable of producing fighters in India. A 100% Boeing subsidiary would be next to useless other than employing a few thousand people, once the fighter order is complete they would scale down and leave India. There would be no "rival" created and no Indian entity would benefit from "know how" gained.


@PARIKRAMA

I agree, they better not **** up defense manufactring

 

[Abingdonboy]

Foreigners building foreign products for Indian Armed forces by employing few Indians in India is not a substitute of Indian/Foreigners collaborating or singly making Indian Products for Indian Armed forces in India by Indians. I hope this thing is there in the minds of our " Till now useless DM ".

Let someone like our Railway or Power or Road minister handle Defence ministry.

Fully agreed, and I don't think anyone is seriously saying this move will enhance India's R&D capabilities, this is simply a move to increase employment and manufacturing in India in line with the GoI's MII and "skill India" policies. This really isn't a defence-oriented shift but a political and economic step. This isn't a disparaging remark though, clearly the success of India is central to the success of its economy so as much as we may be defence enthusiasts it's easy to see that a stronger economy should be the top priority.

Of course the Indian armed forces will benefit as they will likely have access to a greater range of products at comparative price points if made in India and competition is always open tenders.

I think looking at the wider picture the new DPP's emphasis on IDDM (Indian designed developed manufactured) is key here as it will incentivise greater R&D in India and local companies to do the same.

This isn't a game changer for any single purpose BUT it has many benefits across the board.

 

[illusion8]

Fully agreed, and I don't think anyone is seriously saying this move will enhance India's R&D capabilities, this is simply a move to increase employment and manufacturing in India in line with the GoI's MII and "skill India" policies. This really isn't a defence-oriented shift but a political and economic step. This isn't a disparaging remark though, clearly the success of India is central to the success of its economy so as much as we may be defence enthusiasts it's easy to see that a stronger economy should be the top priority.

Of course the Indian armed forces will benefit as they will likely have access to a greater range of products at comparative price points if made in India and competition is always open tenders.

I think looking at the wider picture the new DPP's emphasis on IDDM (Indian designed developed manufactured) is key here as it will incentivise greater R&D in India and local companies to do the same.

This isn't a game changer for any single purpose BUT it has many benefits across the board.

You are right, it's more about economy, India wants to be a major defence manufacturing hub...and frankly, international products manufacturing in India should up the ante for the local players. An organization takes 17 years to make a parachute and fails in the end - a whole parachute department earned salaries, perks and expenses for 17 years and came up with nothing. Why should such a department be protected?.