Israelis use side route in Indian aerospace market

The penetration of major Israeli aerospacecompanies into the huge Indian market is characterised by a variety of tacticsthat are all aimed at putting a heavy hand on larger chunks of the Indiandefence procurement budgets.

 

Late last week, the production facility ofNOVA Integrated Systems, a TATA enterprise, began the production of the Israel AerospaceIndustries (IAI) Electro-Optic Stabilised POP 200 payload.

 

The NOVA production facility for electro-opticsystems is the first of its kind in the Indian private sector and has been setup by NOVA to offer and cater to indigenous design development, manufacture,maintenance and after-sales support capabilities to the Indian defence and paramilitaryforces.

 

NOVA is also in the process of setting upits main facility in the Adibatla area. This is part of the TATA Group’s plansto establish an aerospace manufacturing hub in the Hyderabad area. It willcater for the production of UAVs, radars and missile systems.

 

IAI has identified the bureaucratic difficultiesof forming joint companies in India with local parties and is taking a sideroute – the transfer of know-how to the Indians in return for huge contracts.

 

This has already paid off and the signs areit will continue to bring good results.

 

I’m not making a wild guess when I say Ibelieve that this form of transferring know-how by Israeli aerospace companiesto their Indian counterparts will become a very routine way of putting the bighand where the money is.

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