Almost 40 years ago, the United Kingdom (UK) decided to privatise its defence industry. This did not happen overnight, and was one part of a major change in the way industry related to government as its customer. That new relationship took time to develop. It is still doing so. But even today, private sector business acumen combines with a strong government relationship to make British defence manufacturers among the best exporters in the world.
This week, I will be accompanying some top-rated British manufacturers as well as delegates from the UK government to Aero India in Bengaluru. As two countries with capability and global ambition, this week will be all about looking for areas where we can collaborate.
India has a growing defence capability, and ambitions to become a globally competitive force. More Indian companies than ever will come to Bengaluru and join the international defence industry in competing for opportunities.
That global competitiveness is born of necessity as well as economic ambition. As well as contributing to gross domestic product (GDP), domestic defence industries are an essential part of a strong defence capability, but most also need international orders to survive.
Defence procurement is a complex process. It has to deliver strategic capability and satisfy the tactical requirements of the end user. It must meet the financial constraints of the budget holder, yet create a sustainable commercial opportunity for the manufacturer. Highly capable military forces require specialised equipment, but the more specialised and tailored that equipment becomes, the less adaptable it is to the needs of other customers.
The UK acknowledges this. As a team, it brought together industry, military end users, budget holders and procurement experts to understand what new approaches might work.
As a result, we changed not only our approach to procurement, but also capability setting. Emphasis was placed on flexibility rather than specialisation, enabling designs to be adapted for different end-user purposes. New procurement methods, focusing on cost and speedy delivery, enabled government and industry to adopt a fairer approach to managing risk and opportunity. A closer relationship with industry has helped us adopt new methods of delivery that increase capability rapidly and affordably whilst reducing errors in the supply chain. The delivery of a project on time and on budget is now a realistic goal. In addition, more emphasis has been placed on creating international partnerships to develop new technologies, in programmes that are focused on themes of global importance – including here in India.
These principles are exemplified by the UK’s Combat Air Strategy. The UK government committed almost £2 billion to our Future Combat Air System Technology Initiative (FCAS TI), which uses that funding to invest in our national industry capability and develop the next generation of combat air technologies. Additional funding for FCAS TI has been provided from the UK industry through a project called Tempest. FCAS TI is about so much more than designing a Typhoon replacement — it focuses on a wide range of technologies that could contribute to our current and future air capability.
In line with these principles, the FCAS TI is “international by design” and is open to collaboration with foreign industry and governments — like India — where it is mutually beneficial to do so. Additionally, since it is not focused on a specific single product as an output, international partners will be able to work together with the UK on new technologies that they can apply to their own products and programmes.
We have also initiated our programme to replace Typhoon from 2040, known as the Combat Air Acquisition Programme (CAAP). This programme will explore the best solution to deliver future capability, underpinned by a flexible approach to partnering. This could result in collaboration on sub-systems, which are then used on indigenous systems, or collaborating on systems themselves. It seeks to maximise the ability to leverage the technology and industrial strengths of all nations who wish to participate.
This model is a world away from traditional combat air projects, where companies came together to design and develop a product around a set of requirements. CAAP and FCAS TI aim to move away from a traditional transactional approach to one in which we jointly develop world-leading capabilities in a collegiate manner which encourages creative approaches, underpinned by joint strategic goals.
At Aero India, I will be joined by colleagues from the UK ministry of defence and the Royal Air Force who are keen to work more closely with India. With our experience and cutting-edge expertise, the capability of India’s industry and the demand from the Indian government for state of the art combat air technology, I sincerely believe that India and the UK are natural partners.
The author is the UK High Commissioner
To read the full story, Subscribe Now at just Rs 249 a month
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper