Defence route to hi tech manufacture

Defence route to hi tech manufacture

The Indian economy needs to leverage global expertise to boost innovation, manufactures and services nationally, and the Indian Air Force needs a new crop of medium range multi-role combat aircraft (MMRCA).
The proposed Tata-Lockheed Martin joint venture to make in India F-16 Block 70 aircraft, should New Delhi opt for the American plane in its procurement of single-engine fighters, would be a welcome move. Depending on which of the assorted, country-specific subsystems the F-16 has acquired over the years of its joint production with assorted Nato members and allies, it could give India both better fighting capability and a boost to advanced manufacturing capability.
Such a collaboration would have spin-offs galore, leading to creation of a wide network of suppliers of new-age ancillaries. This could lead to exports, as well, though not to Pakistan, whose F-16s are Block 50 and have a different set of parts and vendors.
Lockheed and Tata already have a joint venture in Hyderabad, which part-manufactures the C-130J Super Hercules, billed as the most advanced tactical airlifter, for customers around the world. The fate of this proposed venture depends on the Indian Air Force’s final choice of MMRCA. However, why the choice of the Indian partner for building a new-generation fighter aircraft should vary depending on the foreign supplier of planes and associated technology, instead of being guided by established capability in production of aircraft parts, is unclear.
The challenge for Indian policymakers in the medium term and beyond is to put in place an ecosystem for innovation and technology absorption to design and make defence hardware. India has the dubious distinction of being the world’s largest defence importer. Proper nurturing of domestic capability can save tens of billions in imports and also provide well-paying local jobs. The way ahead, rightly, is to invite FDI for defence hardware, offering high equity stakes if cutting-edge technology is on offer.
Mere technology transfer would hardly do, we also need capacity to design and build state-of-the art equipment and systems.