Defence expo 2014 sees foreign vendors pouring in

The Kalyani Group has developed Bharat 52, a 155 mm artillery gun. Baba Kalyani, CMD, Bharat Forge says: For us this is one of our diversifications. It will take time. But we look at the next 10 years. We want to be a major artillery house.”

While defence vendors are extremely excited about getting a share of the USD 100 billion defence procurement pie, tight fiscal considerations have forced the Indian government to postpone several strategic defence acquisitions.

Acquisitions that are on hold include howitzers, transport aircraft as well as the apache attack helicopter and the chinook helicopter.

According to Indian defense manufacturers, the debate over the FDI cap should not be just about 26 percent versus 49 percent.

MV Kotwal, president - heavy engineering, L&T says: “We are not per se against any increase from 26 percent to 49 percent. But if we look at the major aim of enhancing defence capability in India then it is important to specify what exactly is meant by saying that when you have 26 raised to 49 what are the specific things that you want to be done within the country.”

Israel-based SK Group, which is already present in India through the JV route, wants to increase its presence in India provided the Indian government relaxes norms related to the defence sector.