With a new Government at the Centre, and a review of policy and regulations around civil aerospace, these are exciting times for Rolls-Royce, says Tony Wood, President, Aerospace of the company. Wood, who came to India recently to meet customers and understand what these changes mean, spoke to Business Line on the Indian market and the company’s future plans. Edited excerpts.

What brings you to India this time?

These are exciting times. India has been a huge growth market for a long time. Like all growth markets, there are always bumps, but we see India as a hugely important market. Obviously with a new Government and with the review of policy and regulation around civil aerospace, it is quite exciting for us. Nobody can ignore India with a million of some of the most skilled engineers coming out of universities and research establishments here. We want to tap into that and be part of that capability.

Any plans on manufacturing in India?

It’s hard to give specifics at this stage. I have not been to India for a few years, but the reason I am here is to see what we have got on the ground and how can we develop it over the next few years. What I am confident of is that the environment which has always been attractive is becoming more attractive. I think the change in Government policy towards foreign direct investment (in civil aviation) with the 49 per rule is positive for joint ventures. I am looking at how we can develop those businesses.

The direction of travel is…… whatever we do it will grow, it will be greater than what we are doing today. So over the next months and years you can expect to see Rolls-Royce continue to grow. We are particularly excited about the engineering capability.

Is your visit for finding out what are the priorities of the new Government? How do you see these changes compared with the previous Government?

It’s difficult to see. We will wait to be informed how the Government makes those decisions. The initial signs are positive. Part of the reason for being here is to explore what that feels like on the ground.

What do you mean when you say initial signs are positive?

If we talk about civil aviation, there is emerging clarity about support for creating better infrastructure across India. That I am sure will include road networks, railways, but also aviation. I think we see a combination of a business friendly environment and a focus on infrastructure, and ultimately that will be a benefit to civil aviation. We can help partners. As India becomes more prosperous with the economy continuing to grow, that benefits the nation as well as Rolls-Royce.

Are you giving a vision or policy paper to the Government on how it can achieve its goals?

It would not be for Rolls-Royce to tell India how to solve its problems

But you are a major stakeholder…

We are a stakeholder. We see ourselves as a partner for India rather than someone who is serving out an answer.

The primary focus of this visit is on civil aviation, just because that is a market in which we see changes and opportunities developing. We are clearly going to be working very closely on the defence side. We have a lot of capability to bring in the segment.

Could you elaborate on that?

It will come down to how foreign direct investment or how liberalisation of the market is opening up international trade.

We are absolutely encouraged by what we see. I will be listening very carefully to the specifics that people are starting to think about as to what might come next. The best example I can give is a view that the private sector will be playing a bigger role in the future. We will see how that evolves.

Does Rolls-Royce think India is the best market to invest?

India is at an advantage with some very attractive fundamentals. It has a growing economy, a growing population and a growing middle class.

It has the opportunity to stimulate growth through infrastructure and obviously aviation. But there is no golden bullet. There are number of situational things that need to happen together.

We see a number of those stars aligning. We are very encouraged by that.

Can you explain what you mean by stars aligning?

The opportunity for for India to grow.

With a large population and very well educated people, the growing prosperity will give rise to markets in which we operate.

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