Companies from the continent try to find their footing amid competition; Indian weapons makers plan to upgrade products
Companies from the continent try to find their footing amid competition; Indian weapons makers plan to upgrade productsNEW DELHI: Europe may be finding itself a bit lost in the present Indian defence setting: An aggressive American presence, powerful Russians successfully twisting the Indian military establishment, and an impressive Israeli image.
Many European firms blame all these factors for their growing inability to win any major defence contracts, especially the last minute cancellation of the billion-dollar army contract for Eurocopter’s light observation helicopters.
But despite such setbacks and notorious Indian bureaucratic delays, they are yet not ready to give up. In fact amidst the over-riding presence of American companies and the slick Israelis at the Defexpo, Europeans are making an unprecedented aggressive pitch to corner the huge defence contracts opening up in India.
Europeans estimate that India would end up spending over a whopping $100 billion in less than a decade.
In recent times, the Europeans have been quite disappointed with what they believe is an Indian bias in favour of the US. After the government decided to cancel the contract for purchase of 197 helicopters for the army in the last moments of negotiations with Eurocopter, European governments have protested to New Delhi.
Eurocopter is part of EADS, the European aerospace consortium in which the French and the German governments, among others, are stakeholders. EADS is also the producer of Airbus.
As late as last week, the German ambassador lodged an official protest with defence minister AK Antony over what was perceived as an unjustifiable decision to cancel the helicopter negotiations which were winding up after almost eight years.
The situation has not been very different for the other big European consortium, BAE Systems. It took them 18 years of negotiations before the Indian Air Force agreed to buy the Advanced Jet Trainer Hawk a few years ago. At the end of this month, the Hawk would be officially inducted into the IAF.
“We have had greater delays,” says Alan Garwood, BAE’s group business development director, putting up an extremely positive stand. “We are very seriously looking at the Indian market, we have exceptionally good relations historically,” he says.
The BAE stall is a good example of the European desperation-they have rolled inside the exhibition stall an M777, the world’s lightest 155mm howitzer. Its barrel almost kisses the roof and almost every visitor stops by to look at the weapon system that the US army is going to use for decades to come.
BAE is busy scouting for suitable Indian partners, so as to take care of the off-set obligations and maneuver the Indian market. Among their first major alliances is with Mahindra Defence—together they have put up a mine—protected vehicle which they hope will find big contracts in a country where landmines are a key weapon for insurgent groups.
EADS, disappointed with the Eurocopter contract cancellation, too isn’t giving up. It has entered into an agreement with the Tatas to jointly bid for the Indian army’s tactical communications system, expected to cost over $1 billion.
j_josy@dnaindia.net 
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