Aerospace ind purchases likely to be worth $35 bn

Indian aerospace industry is likely to purchase equipment worth $35 bn over the next 10 years.

Indian aerospace industry is likely to purchase equipment worth $35 billion over the next ten years including aircraft,a top official said.

Vivek Rae,Director General (Acquisitions) under the Defence Ministry said the Indian companies will get at least $10 billion worth of defence contracts under ‘offset clause’ that mandates any foreign company which secures Indian defence contract should outsource 30 per cent of the contract to Indian firms.

Indian aerospace industry will be making purchases worth $35 billion over the next ten years. Medium Multi-Role Combat Aircraft purchase itself will be about $15 billion,” Rae said.on the sidelines of a seminar at Indian School of Business.

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The Defence Ministry has short-listed France’s Dassault Aviation SA’s Rafale and EADS’ Eurofighter Typhoon for supply of MMRCA in April.

Commercial bids from the two short-listed vendors were opened on November 4,marking the culmination of almost decade-long hunt for India’s new mainline fighter.

He said the Government had already signed Rs 18000 crore (($3.6 billion) worth of defence contracts and the Aerospace contracts will be worth around Rs 14,000 crore.

These contracts are expected to be executed in the next 6-7 years,Ray added.