Your money and our arms

India is a booming market not just for the Pepsis and Vodafones of the world, but also the Lockheeds, Boeings and BAEs. That was amply evident at the four-day Defence Expo held in New Delhi last fortnight. Two hundred and seventy-three companies from 30 countries, including the US, Russia, Germany and South Africa, put up impressive shows at the expo, which is held once every two years.

All of them—BAE with its ultra lightweight M777 howitzer guns, France’s Thales, DCN, Dassault and MBDA with their submarines, and fighter jets, and Israeli firms, led by Israel Aircraft Industries, with their world class air defence and a range of sniper and assault guns—had lined up for a piece of the $25-35 billion that India plans to spend on defence equipment (also see Boom, Boom on page 36). The contingent from the US was the biggest with 46 companies, and was led by its former Secretary of Defence William Cohen. Lockheed Martin has already bagged the $1-billion contract for six J-series Hercules transport planes (it marks the biggest military aircraft deal with India in five decades), but it had its eye on the $10-billion contract to provide 26 fighter jets to the Indian Air Force. The Americans were also eyeing a helicopter deal with India, given that a $500-million contract for 190 choppers signed with Eurocopter was nixed on November 30.

The Russia contingent was the second biggest with 43 companies, but maintained a low profile. Of course, the Russians, too, have their sight trained on an upgrade order for 78 MiG-29 fighter planes—a contract worth $1 billion. The upgradation was mooted by the Indian Cabinet recently.

“We need the most advanced technology and we will award the contract to whoever offers best price and quality,” Defence Minister A.K. Antony told manufacturers at the expo. India’s defence procurement system may be painfully slow, but arms marketers are willing to play ball. “We abide by the rules and norms of the Indian democracy,” a cheerful Cohen told BT. When you have more than $25 billion up for grabs, patience comes easy.

— Amit Mukherjee