The Hindu Business Line : Airbus maker may shift some manufacturing to India

New Delhi, May 28 The European aircraft consortium, EADS, has said that it may start producing in India so as to be closer to its customers here. The Company Chairman, Mr Louis Gallois, told newspersons at the ongoing Berlin airshow that if EADS wanted to sell in India, it would also have to look at producing here.

The statement comes in the wake of Airbus maker, EADS participating in two ongoing Indian defence procurement programmes — the 126 medium multi-role combat aircraft being acquired by the Indian Air Force and 150 helicopters for the Indian Army.

The terms of both contracts specify that the eventual winner will be allowed to ship the first batch of aircraft from the supplier’s manufacturing base, but will eventually have to shift the manufacturing capability to India.

Officials feel that any decision to move production to India could be beneficial to the European consortium. “Currently, most of EADS production is in the Euro zone, while payments are generally made in dollars, which is not very favourable due to the exchange rate fluctuations these days. Besides, if the company wins any of the orders in India, it can claim that it is already sourcing from here and seek adjustments against the offset clause that is mandatory in Government contracts,” an official said.

Call for tie-up

EADS is offering the Typhoon aircraft to the Indian Air Force and AS 550 C3 Fennec helicopter to the Indian Army. The European consortium has also invited India to become a partner of the Eurofighter programme under which the Typhoon aircraft is being produced.

Meanwhile, the Defence Minister, Mr A.K. Antony, has said that companies planning to sell major defence products to India must be prepared to part with technology.

Speaking to newspersons at the airshow, Mr Antony said India would like to have fruitful defence cooperation with countries which are prepared to transfer technology and are interested in co-designing, co-development and co-production of defence products.

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