This could come as music to Indian government and Prime Minister
Narendra Modi's ears. The Boeing Company is ready to offer a
contemporary, state-of-the-art combat plane under the 'Make in India'
initiative.
The Boeing Company Chairman James
McNerney, who was in India to participate at the 'India's Time To Fly'
Summit organised by his firm in association with IIT-Bombay here today,
said he believed there could soon be a campaign to meet more combat
planes requirement of the Indian Air Force (IAF) and that Boeing's offer
would include a 'make in India' plan for those combat planes.
His comments are interesting for
the simple reason that India had in August 2015 announced the scrapping
of its 2007 tender for 126 Medium Multi Role Combat Aircraft (MMRCA)
following Modi's decision in April that India would directly buy 36
Dassault Aviation's Rafale combat planes from the French government to
meet its air force's immediate operational requirement. Boeing had
pitched its F/A-18 in the now-dead MMRCA tender.
Since April 2015, the top leadership
of Swedish Saab has pitched its single-engine Gripen fighter and the
American Lockheed Martin has offered to seel its F-16 combat jet to
India.
IAF chief Air Chief Marshal Arup
Raha had said in his annual press conference ahead of the Air Force Day
on Oct.8 that he was looking at have six MMRCA squadrons in the fleet
and the present 36 Rafales would only cater to two squadrons.
That leaves open an opportunity
for leading global combat plane manufacturers to launch a campaign to
sell at least 153 more MMRCA to India, in case the IAF requirement
continues to be the same as in the 2007 tender, when it was indicated
that a 126-plane purchase could have an additional 63-plane follow-on
option.
"There will be a fighter (plane)
campaign in this country over the next couple of years. Our approach is
going to be to take a current, state-of-the-art fighter and bid. The
quantities are uncertain, but the numbers are going to be significant.
Our bid will include a proposal to make the plane here," McNerney said
at the Boeing Summit. He was giving an example of a 'Make in India' and
technology transfer programs that Boeing could do.
"On the defense side, the two
governments have to decide what technology they want to share or not.
Leaving that aside, and generally speaking, the more cutting edge the
technology, less the sharing will be. Now, that (fighter plane offer) is
different and very different. The value to India is a very modern
production system, integrated to make a very sophisticated machine. That
kind of industrial base capability is as important as the fighter
(plane) itself. These modern manufacturing techniques can go into many
different industries," he said.
The Boeing chief also said that
they were now closer to setting up an assembly line for either the
Apache attack choppers or the Chinook heavy transport military
helicopters in India. He did not specify which one of the two
helicopters would that assembly line be for. Boeing had on Sep.28 signed
two deals, cumulatively worth $3.1 billion, with India for the two
helicopters.
"The Apache is an attack
helicopter and the Chinook is a heavy transport helicopter. Both are
critical for defense. Largely, (we are) assembling one of those here. We
are much closer to have assembly line of one of those airplanes here.
That will play out and that's our strategy. This market is too
important, the capability is too high, and the commitment is
significant," he said.
McNerney admitted that it was the
India-U.S. civil nuclear agreement (of 2005) that made it easier for
all the defense deals between the two nations to happen. "That (civil
nuclear deal) unlocked everything, in terms of g-to-g relationship and
opening for more strategic technology sharing. All those deals on the
defense side were all done after the civil nuclear deal. None of them
were done before that. It wasn't possible at all."
India bought its first American
defense product in several decades in 2007 when the U.S. sold its USS
Trenton amphibious warfare ship to India. It now serves the Indian Navy
as INS Jalashwa. Since then, U.S has surpassed Russia as the largest
supplier of arms to India in the last four years. In the last decade,
U.S. has notched up an impressive $12-billion defense sales to India, a
large chunk of it going to Boeing, including for its C-17 heavy cargo
for $4.1 billion and P8-I long range maritime surveillance planes for
$2.1 billion.
The Boeing chief also said that
when he got to meet Modi during the CEOs interaction during the Indian
Prime Minister's U.S. visit in September, the discussions were "not
cheer-leading" but were "real issues". He said there were much that
needed to change in terms of taxation, regulatory frameworks in India.
But the Modi government's commitment was encouraging. "They are now
listening to what we have to say."
He was also all praise for the
Indian armed forces and their procurement of military hardware. "The
Indian military capability is well organised and strong. As I compare
with places around the world, they (Indian forces) know what they want.
The leadership of the government and the new prime minister have been
very strong on national defense.
"The neighborhood can be a little
shaky. This commitment (for defense of the nation) makes sense.
Geo-politically, it makes sense. And so, compared to other places, they
(Indian forces) know what they want and are clear about it. There is
normal push and pull, that also happens everywhere in the world. There
is this bureaucratic back and forth that happens. Sure, there are
changes (in India). I have been to a lot of places around the world
where the specifications change three or four times over the course of a
five-year discussion. We have lesser than that here. Hence, it is a
pretty good group of forces."
McNerney said 'Make in India' is a
very important initiative for the country. He said the Modi
government's initiative would ramp up the deployment of the capability
that India possesses in manufacturing, design and development two or
three levels higher.
"It is not about someone handing
you a blueprint and you making it. The vision of the prime minister is
more than that. The 'Make in India' is to design and make for India, and
for India and the world. We think, with the global nature of our
products, we can play a part here. If politics allows this initiative to
continue for five years, then it will take the manufacturing economy of
India from its 14 per cent now to nearly 25 per cent in the next five
years."
The Boeing chairman said India
would remain "a big player" on the global scale and it was "starting to
be", being the "fastest growing" economy in the world.
"You have a democracy that make
it easier to work with. There are other things. I think all the
capability is here in programs that I want to make here - even
assembling entire airplanes - wings, fuselage and other machines that
make the airplanes work. We are committed to taking the Indian
capability to that level."
He said it was a win-win for
Boeing and India. "I see an opportunity to move India up by bringing in
new technology, know-how. As the defense and space industry in U.S.
became a repository of technology in the 1960s, a similar thing can
happen here. It is a strategic commitment. We will get more business and
India will get more know-how."
McNerney said The Boeing Company
was in discussions with Indian partners for its entire portfolio or
products. "There are very few country where Boeing's complete portfolio
can find natural partners within. India was an ally and also had a huge
market. This is a very unique opportunity for Boeing."
He also said the assessment was
that there would be a 1,800-plane commercial airplanes sold in India in
the next 20 years and that market was worth $800 billion. Boeing caters
to a large chunk of Indian commercial aviation fleet.
Boeing India President Pratyush
Kumar, in his opening remarks at the Summit, said, "India is now ready
for aerospace manufacturing. Boeing is creating an ecosystem for
aerospace research and development in India. Boeing is partnering with
India in aerospace to make the country part of the global aerospace
industry."
armingin