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Video - Aero India show : India changes its aviation strategy

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It was at the Aero India air and defence show, held from 18th to 22nd February, at Bangalore in southern India, that the Indian Prime Minister, Narendra Modi announced an about turn, by advocating : "Made in India".

The world's top weapons importer, wishes to increase the domestic production of its military equipment, from 40% to 70% by 2020. To do this, and motivate foreign companies to establish themselves within the country, the Indian government has increased the interest that a foreign investor may hold in an Indian defence group up to 49%.

Philippe Boissat, Senior Advisor, Aerospace & Defense Europe - Deloitte 

"It's actually the very strong administrative processes that, ultimately, make it the 'Made in India', even if external companies bring in their expertise. This is, at one and the same time, a form of market protection through taxes, the fact that the capital comes not only from foreign investors, and of being able to provide employment for the local workforce."

According to the Modi government, a reduction of one-quarter of the country's military imports could create up to 120,000 highly skilled jobs in India. The Rafale, of which 108 units should be produced in India, is an example. The country has ambitions, and would like to take over 4% of the world market for aircraft maintenance and repairs (MRO) ; and its civil and military aircraft needs are no secret.

Philippe Boissat, Senior Advisor, Aerospace & Defense Europe - Deloitte

"We envisage a demand of about 1,000 new civil aircraft for 2020, so it’s nothing trifling, and there is also the whole military fleet to be renewed, which is also very interesting.’’

These many arguments should convince the sector’s manufacturers to establish themselves on Indian soil, as have the French group Safran and Russian Sukhoi already done. There are several objectives: the possibility of winning new local contracts, and why not, use India as a platform for exporting to Asia where demand is growing ?

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