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

[Hephaestus]

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

That clears some doubts. Thanks!

 

[randomradio]

* @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

Boeing has already decided to work with TASL. They plan to transfer most of the manufacturing to Tata and other companies.

 

[[Bregs]]

now thats a good start for foriegn players to bring there latest tech in india

Now rafales and many more high tech complex weapon systems specially frm west n US seems to be the real possibility

 

[GURU DUTT]

Now rafales and many more high tech complex weapon systems specially frm west n US seems to be the real possibility

ya i was also thinking same as both dassault and boeing want to go alone in india under MII scheme

 

[egodoc222]

100% FDI was there since 2013, anything over 49% has to be "state of the art" to be considered for government approval
NOW it's "modern tech" to get approval.

https://twitter.com/x/status/744853543492845570

https://twitter.com/x/status/744853816994992128

Yeah....now see what happens when you change one word....!!

 

[fsayed]

Take a look at @ajaishukla's Tweet:

https://twitter.com/x/status/744833607395573760

Take a look at @ajaishukla's Tweet:

https://twitter.com/x/status/744832614775857152

 

[Perpendicular]

Yeah....now see what happens when you change one word....!!

It might only broaden the spectrum of items being sought approval for. Whether allowed or not solely depends upon the govt as before.

 

[SrNair]

Govt tested all possibilities and now arrived in this solution .

 

[egodoc222]

Take a look at @ajaishukla's Tweet:

https://twitter.com/x/status/744833607395573760

Take a look at @ajaishukla's Tweet:

https://twitter.com/x/status/744832614775857152

Yeah he is world renowned defence analyst!!

 

[magudi]

Take a look at @ajaishukla's Tweet:

https://twitter.com/x/status/744833607395573760

Take a look at @ajaishukla's Tweet:

https://twitter.com/x/status/744832614775857152

Hey bro we have a better defence expert I thought you'd quote him

https://twitter.com/x/status/744881502027059200

 

[Ankit Kumar]

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.

 

[IndianSudhakar]

Be Calm and Trust Modi

 

[topgun047]

100% FDI is not really good for India. Just setting up a plant here does not "NECESSARILY" mean transfer of technology. In fact there are still some ICs which the US companies are not allowed to sell in India. Then how can we expect them to help our knowledge base in Defence. And what affect did US sanctions have on Pokhran test ? NOTHING. Its only gonna make country more reliant on foreign players. If 100% FDI is so good why do none of the top defence guys do that ? almost all of them are self reliant in their defence needs. The govt should try to improve local defence sectors which is more difficult

As someone mentioned, India's automobile sector is a good case study to understand the intention behind this reform.

Imagine Boring and Saab setup jet engine manufacturing plants in India and employ about 4000 high skilled people.

Now Tata and Ambani want to becom3 Boeing and Lockheed Martin of India but don't have the time or money to reinvent the wheel and start off by manufacturing propeller engines of circa WW1 aeroplanes.
So instead they poach trained people from the pool working for Boeing and Saab while Boeing and Saab train new people to keep their investment running.
It's a win-win.

Edit: Better analogy for jet engine would be GE and Pratt & Whitney.

 

[cloud_9]

So the as usual the govt. approvals will be processed by babus at a continental drift speed.
Has anyone thought of simplifying laws ?

 

[jetray]

Mallya would be crying after hearing 100% fdi in aviation.