Obama to push for more defence deals with India in 2nd term

India on Wednesday congratulated Barack Obama for winning a second term in the White House hoping the economic and defence ties between the two countries will be furthered.

Obama has been instrumental in pushing through defence deals worth $10 billion with India in his first term creating thousands of jobs back home. Many of the defence deals with the US are still in offing.

Prime Minister Manmohan Singh also congratulated Obama – with whom he shares a special equation -for his re-election. “I have no doubt that there is much more we can do together to further strengthen the India-U.S. partnership and thereby advance peace and stability, expand mutual economic opportunities, harness the potential of science and technology, innovation and higher education and empower our people to address global challenges,” Singh said in his congratulatory message. 

Obama has also been pushing for better relations with India as was evident during his four day presidential tour – the longest overseas visit by him as President. Obama, who broke the racial ceiling for being the first Black elected President in the White House, also expressed his solidarity with India in countering terrorism.

As per keen watchers of the defence industry, there will be “renewed thrust” from Obama on signing of more defence deals with India to help the economic crises back home. The total defence trade between the two countries in last 10 years has been $ 10 billion and in 2011 only India has purchased military equipments worth more than $4.5 billion from the US. The big ticket deals signed with the US in the last five years been eight P-8I maritime surveillance and anti-submarine warfare aircraft from Boeing valuing $ 2.1 billion. India is also buying 10 C-17 heavy-lifters from Boeing for $4.1 billion. The six C-130 J special operations aircraft valuing $ 1.2 billion have already arrived in the country and order for six more is in the offing. India is also planning to place an order for M777 ultra light howitzers for $ 700 million to augment its firepower in the mountainous terrain.

The US firms have also emerged as the chosen one for supplying the attack helicopters and the heavy lift helicopters for the Indian Air Force.

In a gesture to reciprocate, the US also eased its US Export Controls and Technology security policies towards India and removed premier Defence Research and Development Organisation and Indian Space Research Organisation (ISRO) from the Commerce Department Entity List.

The US earlier this year unveiled a new military strategy for Asia-Pacific under the leadership of Obama giving a more pivotal role to India to counter the rise of China. The US has been all out trying to woo India by stepping up bilateral defence trade and cooperation. The US also underlined its commitment towards the modernization of the Indian Army.

With the US set to pull out its troops from strife-torn Afghanistan by 2014 end, it has been urging India to play a greater role in stabilizing the country. So far India’s involvement in Afghanistan has been limited to economic and soft skills development. The US is keen on New Delhi’s help in training Afghanistan police and Army.

Soon, a slice of India on US military aircraft

Hyderabad will soon be put on the world defence map as the Tata Advanced Systems unit will start churning out the spare parts for the US special operation aircraft C-130 Js, presently in service of 15 countries.

The factory will become operational over a year after the Tata Advanced Systems entered a Joint Venture with the US aerospace major Lockheed Martin. Lockheed Martin had supplied six C-130 J Super Hercules aircraft to the Indian Air Force (IAF) and the contract mandated it to invest 30 percent of the deal within the country.

“The factory will be manufacturing replacement centre wing boxes and every tail section, on every new C-130 J sold around the world. Beginning August all the C-130 Js sold to any country will be built in Hyderabad,” Lockheed Martin’s India head Roger M. Rose said.

Designed for special operations, the four-engine aircraft is equipped to take the troops behind the enemy lines enabling to strike them hard. Capable of operating from a short runway, the aircraft can also operate in pitch dark conditions.

Tata Advanced Systems hold 74 percent stakes in this JV and Lockheed retains 26 percent – the prescribed Foreign Direct Investment (FDI) limit in the defence sector. Tata Advanced Systems is a wholly-owned subsidiary of Tata Sons focused on providing integrated solutions for aerospace, defence, homeland security and disaster management.

“This is our first JV in India. These are both major components in an aircraft and this strengthens our foothold in the Indian defence market as well,” said Roger, while beaming about the fact that the firm delivered six C-130J Super Hercules aircraft to the IAF well before the deadline. The IAF had signed the $1billion deal for the six aircraft in 2008.  The Lockheed Martin will be integrating these aero-structures and supplying it global customers.

The Factory is being set up in the Special Economic Zone (SEZ) in Adibhatla near Hyderabad along with its two other JVs. Tata Advanced Systems had earlier entered a JV with Sikorsky Aerospace Services to manufacture helicopter cabins within a unit set up with an investment of Rs. 1,000 crore. It will be manufacturing the cabins for all S-92 helicopters here.

Another of its JV with Israeli Air Force Technologies named NOVA has been allotted 30 acres land in the area.

Nice pics of 6 C-130 Js of IAF flying together

Photos courtesy Indian Air Force