European aerospace and defence (A&D) companies see India as one of the most attractive markets. For these companies, investing and setting up there could provide a solution to some of their problems, such as producing in the dollar zone, manpower costs and the shortage of qualified people in Europe. The big prime contractors such as EADS, Safran, Thales and BAE Systems have understood this. Despite difficulties (legal, socioeconomic, etc.) that put a brake on the aspirations of subcontractors (Recaero and Machaero are exceptions), the setting up of European SMEs could help young Indian A&D companies, and several ways of helping these European SMEs are worth exploring. Apart from prime contractors and industrial groupings like Gifas, it is also in European governments’ interest to help in this. US, Russian and Israeli competitors have already set up in India, some many years ago.
India: a New Eldorado for the European Aerospace
India can reflect on a decade of significant political, economic and demographic transformation which today sees it stand as the world’s fifth largest economy(1) and the second most populated nation.
As an emerging market, it could be an attractive destination for European companies confronted by new challenges in their domestic markets. This is the case in the aerospace and defence (A&D) sector.
While the automotive sector has already made its move to India, European A&D companies seem to be lagging behind in terms of local industrial presence, despite the significant business opportunities in the Indian defence and civil aviation sectors.
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