BENGALURU in southern India is the hub of information technology, but for a few days, all eyes in this hi-tech city were peeled towards the skies away from computer screens. High-speed low flying runs, rolls, somersaults and formation flying enthralled spectators. Airplanes of all shapes and sizes dazzled audiences as part of the 10th edition of the Aero India show held from Feb. 18-22, 2015. Fighter jets, large cargo planes, helicopters, vintage propeller driven planes and unmanned aerial vehicles all danced in the skies to enthrall enthusiastic crowds. India's indigenously made fourth generation Tejas aircraft performed to accuracy and earned applause. According to the Indian Ministry of Defense, 635 aerospace companies and nearly 300 CEOs from India and abroad including delegates from 42 nations participated. Hundreds of stalls displayed their hi-tech wares. The aerial display began with an Indian Air Force (IAF) vintage Tiger Moth plane reminding of India's modest origins in an earlier era of warplanes. Transcending to today and aptly in keeping with the Make in India theme, two indigenous creations — Light Combat Aircraft and a Light Combat Helicopter — flew in quick succession displaying India's technological leap in aircraft production. The frontline Russian made Sukhoi-30 MKI of the IAF left the gathering spellbound with its versatility and agility, performing the vertical Charlie to perfection. Not to be left behind were impressive displays by an American fighter jet F-16 and the French Rafale jet fighter. Aerial stunts were performed by few foreign aerobatic teams like the Breitling Wingwalkers from the UK, who performed atop the wings of flying airplanes. The show-stopping moment was provided by Sarang, the IAF's helicopter display team, in their sprightly colored, peacock-themed, Advanced Light Helicopters. For the first time, two women officers also participated. In a first, Indian Prime Minister Narendra Modi inaugurated the mega event, which in a way was kick-starting his pet program of Make in India, making the country the hub for manufacturing defense equipment. At the inauguration, Modi said, "This, the largest ever Aero India, reflects a new level of confidence within our country and global interest in India. To many of you, India is a major business opportunity. We have the reputation as the largest importer of defense equipment in the world. That may be music to the ears of some of you here. But this is one area where we would not like to be No. 1! Our security challenges are well known. Our international responsibilities are evident. We do need to increase our defense preparedness. We do have to modernize our defense forces." The Indian Air Force Station at Yelahanka, on Bengaluru's outskirts, was converted into a mega-specialized trade fair with participation of 250 Indian companies and 300 foreign firms vying to do commerce at the bi-annual air show. All major aerospace companies like Rolls Royce; Airbus Industries; Boeing, Lockheed Martin among many others made their presence felt. Indian giants like Hindustan Aeronautics Limited (HAL); Bharat Electronics Limited (BEL); the Kalyani Group and Tatas showcased their products and looked to make joint ventures with overseas partners. Towards that after India liberalized the limits of foreign direct investment to a maximum of 49 percent, the Kalyani Group and Israel's Rafael Advanced Defense Systems inked a joint venture. The chairman of Kalyani Group, Baba Kalyani said, "Rafael has been an active participant in the Indian defense market. As part of the alliance, we hope to develop military applications based on our own proprietary technologies." Kalyani Group aims to do business worth $100 million in the next two years. India's Defense Minister Manohar Parrikar, an IIT-trained engineer, said, "With the security scenario, India becoming self-sufficient in defense production is important. Make in India is immensely important and this is an important time for ensuring that business deals are struck." India is powering its navy too. In February, the Indian government sanctioned the making of seven stealth frigates and six nuclear-powered submarines, the combined cost to be over Rs.1 lakh crore. It has asked HAL to manufacture about 70 Pilatus trainer aircraft while acquiring 38 of these planes from the Swiss company. Indian President Dr. Pranab Mukerjee, speaking in the Parliament, said, "The Make in India program aims to create a wholesome ecosystem to transform India into a manufacturing hub... Stress is being laid on research and innovation while focusing our attention on manufacturing for creating more jobs." Towards this goal, Modi said, "In India, the defense industry in the government sector alone employs nearly two lakh workers and thousands of engineers and scientists. They produce an output of nearly $7 billion annually. It supports a large pool of small and medium enterprises. Our defense industry in private sector is still small. But it employs thousands of people. This is despite the fact that nearly 60 percent of our defense equipment continues to be imported. And we are spending tens of billions of dollars on acquisitions from abroad. Studies show that even a 20-25 percent reduction in imports could directly create an additional 100,000-120,000 highly skilled jobs in India. If we could raise the percentage of domestic procurement from 40-70 percent in the next five years, we would double the output in our defense industry. Imagine the impact in terms of jobs created directly and in the related manufacturing and services sector. Think of the spin-off benefits on other sectors in terms of advanced materials and technologies. That is why we are focusing on developing India's defense industry with a sense of mission. This is why it is at the heart of our Make in India program. We are reforming our defense procurement policies and procedures. There would be a clear preference for equipment manufactured in India. Our procurement procedures will ensure simplicity, accountability and speedy decision making. We have raised the permitted level of Foreign Direct Investment to 49 percent. This can go higher if the project brings state-of-the art technology. We have permitted investments up to 24 percent by Foreign Institutional Investments. And there is no longer a need to have a single Indian investor with, at least, a 51 percent stake. Industrial licensing requirements have been eliminated for a number of items. Where it is needed, the process has been simplified. We are expanding the role of private sector, even for major platforms. Our goal is to provide a level playing field for all." The world is welcoming India's new pitch. Frank Kendall, the American Under Secretary of Defense, writing in The Hindu newspaper, said, "Our governments and industries can work to strengthen India's industrial base to not only Make in India but to make the region and the world a safer place." India and the US have embarked on what are termed "pathfinder" projects as part of the new Defense Technology Trade Initiative (DTTI), which include jointly making jet engines and aircraft carrier technology. While big ticket deals eluded this air show, over 3.5 lakh visitors enjoyed the spellbinding display with Modi emphasizing that our aerospace industry alone needs about two lakh people in another 10 years. Major opportunities exist for global giants to make India the low cost reliable hub for manufacturing aerospace equipment as the government gives this sector the wings it needs to fly.
