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SP's Military Yearbook 2021-2022
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Where are the Dividends?

Issue: 01-2011By R. Chandrakanth

India relies on imports for all its aerospace needs. Size-wise we are comparable and bigger than many countries, but production-wise, we lack commitment and a sense of urgency, resulting in delays and cost overruns.

Air Marshal P.K. Barbora retired as Vice Chief of the Air Staff on December 31, 2010. Known for his forthright views, Barbora in his last official public conference did not mince words on the languishing state of the Indian aerospace industry and one which had not “paid back dividends”.

Addressing the fifth International Conference on Energising Indian Aerospace Industry, the Air Marshal began by asking, “Do we have an aerospace industry?” and answered, “Yes, we do have in the form of defence public sector undertakings (DPSUs) and ordnance units.” The next question he put forth was, “Has it paid worthwhile dividends?” The matterof-fact reply was, “In the last 72 years, it has not paid us back dividends to the desired extent. Size-wise we are comparable and bigger than many countries, but production-wise, we lack commitment and a sense of urgency, resulting in delays and cost overruns. We need to seriously think about this.”

Consequently, India has to rely on imports for all its aerospace needs. “It means we are paying them so that they can pay their people… in other words it is robbing Peter and paying Paul.” The miniscule Indian exports are a blot on the potential that exists.

Indeed it is time to relook at the status of the Indian aerospace industry—time to get the political leadership to back aerospace programmes; time to invest massively in research and development; time to open up the industry for increased private sector and foreign participation; and time to develop domestic and overseas markets. There cannot be a better time than now as Indian aviation requirements, both military and civil, have grown beyond imagination. The requirement of 126 medium multi-role combat aircraft (MMRCA) alone is worth $11 billion (Rs. 49,500 crore). In the civil aviation realm, increased passenger and cargo movements are the key drivers for airlines to expand and MRO and other facilities to come up at a faster pace.

The scale of the programmes is massive, requiring a change in mindset, coordinated and well-planned approach, moving away from bureaucratic delays that have been plaguing the nation. One of the first things that the country has to get off the block is to set up the muchdelayed National Aerospace Commission on the lines of space commission.