Create a strong aerospace sector: Air Marshal PK Barbora

"In the area of aerospace we are still very weak. We need to create aerospace related infrastructure. India missed on the mid level technology, so we went in for outright direct purchase and the seller was very happy. Partnerships and joint venture are two magic words for the India of tomorrow. Private sector must be allowed a free hand. You cant tie them down. Also we must open up export for them. They must be allowed a market of their choice and not our. India needs to take bold

steps in FDI policy for the defence sector. Additionally offsets obligation should be instrumental in inviting technology to India," said Air Marshal PK Barbora, Vice Chief of the Air Staff, while delivering the key note address at the4th International Conference on Energizing Indian Aerospace Industry, organized by the Confederation of Indian Industry & the Centre for Air Power Studies in association with the Indian Air Force.

Mr. William Cohen, Former Secretary of Defence, United States of America stated that the first step towards modernisation is to determine the systems needed in the backdrop of existing and future threats. India needs to construct an architecture that can help establishing its defence capabilities and he stressed that intelligence gathering and sharing, building a common database and commonly strategise to marginalise threats like weapons of mass destruction, climate change, terrorism and equilibrium in Indian Ocean, is of supreme importance.

"The Indian aerospace industry, both military and civil, stands uniquely poised today, on the threshold of catapulting itself into the global arena. Due to the overwhelming support and involvement of the government in the demand and supply of defence and civil aerospace products, the industry has set itself on the firm path towards a transformational change", exalted Satish Kaura, CMD, Samtel group and Co Chairman CII National Committee on Defence & Aerospace, in his welcome address. He also stated that Indian Defence budget for 2009-10 is $31 billion, and expected to reach $100 billion mark in the next ten years. The Government of India has been undertaking initiatives to encourage participation by the private sector. The recent amendments to the DPP 2008 is a welcome step. Apart from defence, as the India economy grows, civil and cargo aviation has recorded CAGR of 18% and 9.9% respectively. Huge opportunities exist for maintenance and repair, avionics, communication systems, control system design, software design among others.

"The global industry and indeed the aerospace industry, is undergoing dynamic changes. New advancements in technology are leading to higher expectations from the aerospace industry. In India, we are witnessing a dramatic change in the nature of growth in this important sector", expressed Air Commodore Jasjit Singh, Director, Centre for Air Power Studies, while opening the proceedings of the conference.

Marshal of the Indian Air Force Arjan Singh, DFC released a report titled, 'Enhancing role of SMEs in Indian Defence Industry', prepared by CII and Ernst & Young. As per report, currently there are over 6,000 SMEs supplying around 2025% of components and sub-assemblies to Defence Public Sector Undertakings, Ordnance Factories, DRDO and the armed forces. With opening up of the defence sector and the leading industrial houses such as the Tata Group, Godrej & Boyce, Bharat Forge, Larsen & Toubro, the Mahindra Group, Kirloskar Group, Samtel and other companies ramping up their aerospace and defence capabilities, its likely that there would be increased opportunities not just for the existing SMEs to scale up but for new SMEs to explore business opportunities in this sunrise sector.

Marshal of the Indian Air Force Arjan Singh outlined that Coordination between industry and air force has been lacking, and the manufacturers and designers must be apprised about user success-ability. Expressing need for an effective defence sector, he further stated that India is in a peculiar position, as the forces surrounding us are building against us, and combination of these forces shows a bigger problem. Thus peace can be achieved by building defence and ensuring security for the people.

Mr. Ashok Nayak, Chairman, Hindustan Aeronautics Limited (HAL) said that HAL aspires to be listed amongst the top twenty global defence companies with a turnover of $6 billion in the coming 10 years. This would call for a five fold increase in production requirements as the company at present holds 34th position with a turnover of $2 billion. The growth in India's aviation sector will act as an opportunity for HAL to meet its growth objectives. He emphasised that offset programme offers a great opportunity for HAL.

The conference focussed on the new challenges and opportunities that lie ahead, and on the path India needs to follow in the coming years. The two-day Conference deliberated on issues like Nature, Dynamics and Impact of Aerospace Power, Partnerships in Aerospace Industry: Past Experience and Future Prospects, Impact of Offsets on Aerospace Industry, Road Map Ahead for Indian Aerospace Industry, MRO Opportunities in India and trends in aerospace industry.

The participants at this Conference included senior officials of Ministry of Defence (MoD), Indian Air Force, Indian Navy, Defence Research & Development Organisation etc., retired IAF officers besides representatives from industry.