India to display capabilities at Dubai air show

Outsourcing in manufacturing sector? After the software sector establishing itself as a global power in outsourcing, it may be the turn of the secondary sector to take off.

Again it is the cost advantage which should help the Indian firms ultimately. It is the spare parts, machining and others related to the aviation industry which could be the important one.

"The joint ventures and other tie-ups are much sought-after by global majors in the aviation sector," said Air Cmde J Varkey (retd), secretary general, Society of Indian Aerospace Technologies and Industries (SIATI).

"The cheaper, high quality labour is attractive to the West as they are able to keep their costs down significantly. They can cut costs by up to 75 per cent," added Varkey.

Citing an example, he said: "Labour cost in production of a machine part may be $480-630 depending on how complicated the product is. In India it can be done for just $90."

Events like the Dubai Air Show scheduled to be held next week is a place for the industry to showcase India's capabilities in aerospace technologies. Such shows also help market India as a destination for outsourcing manufacturing of high grade spare parts.

India's manufacturing sector had not been present as much on the global radar as the software sector till now.

This was because China's manufacturing sector had a cost advantage but it has been losing this advantage to India in the recent past, said Varkey.

After the Singapore Air Show 2004 where India had showcased its capabilities, the firms that exhibited their capabilities had attracted a lot of interest.

Aerospace industry majors like General Electric, Snecma and a few others, who make aircraft engines, have been scouting for partners in India.

Among the participants from India will be the Indian Space Research Organisation (ISRO). "ISRO is going there to show what it is capable of," said a spokesman for ISRO.

It is also to show the expatriate Indians across the world what India is capable of, he added.

The 2005 edition of the Dubai Air Show which is the ninth chapter will see 17 participants from India. While India may not showcase any aircraft, NAL will showcase what it has and is capable of.

The Indian pavillion at the air show will be spread over 140 square metres.