Expanding aerospace

Last week's Bangalore air show, the biennial Aero India, was a success in every way. Participation was up 30 per cent on the previous show, and the defence ministry has earned over 40 per cent more revenue, to clock Rs 20 crore.

Such growth, at a time when most established air shows are not growing, points to two realities: Indian capabilities in aerospace are still quite nascent but there is a promising future.

In keeping with the new professionalism permeating many other sectors, the organisers have engaged IIM Bangalore to determine exactly how much business was done at the fair.

While that report will give the hard numbers, there is anecdotal and circumstantial evidence to indicate a new trend, of buyback elements being written into major purchase agreements that India signs in aerospace.

The civilian world is asking for more fuel-efficient and quieter flying machines, the military world is asking for less cluttered cockpits and deadlier airborne weaponry, all to be developed and delivered in less time than before.

India, with its low-cost, high-quality scientific skills, is emerging as an attractive partner to global players. Those looking for Indian collaboration range from leading western firms like the Snecma Group to important players in the erstwhile Soviet bloc and a range of aerospace and armament firms of varying sizes.

The role of large and small Indian software firms, as also that of HAL in designing and manufacturing parts of Airbus 380 and Boeing 7E7, is by now well-known.

What is new is HAL being offered risk equity partnership by a consortium developing regional jets with the extended Russian geography in mind.

The missing element is Indian entrepreneurial leadership that is willing to think big. The private sector had until lately been excluded from this space and HAL and the various public sector R&D establishments have in the past taken decades to develop products and capabilities.

At the air show the defence minister reiterated the government's decision to welcome the private sector into defence production. But private initiative has so far been very tentative as everyone is waiting for the government to spell out its procurement plans with some firmness so that they can plan their investments.

Large firm orders for the advanced light helicopter and light combat aircraft will do wonders for India's aerospace industry.

While the smaller players can follow the trail laid out for Indian defence procurement, large Indian players need to have a global perspective.

There is talk that India may order a few Brazilian Embraer executive jets to develop AWACS. This highlights how much India still needs to learn.

Much is being made of the turboprop Saras, which is still too heavy to carry any useful load. HAL has to develop a drive and vision that it does not yet have. Large private Indian players with big ambition can also come forward.

Tata Consultancy is already a one-stop design shop through its role in the intermediate jet trainer. The group now has to decide whether to go ahead and actually build aircraft.