This year India will be the only country of the BRIC club (Brazil, Russia, India, China) to maintain high economic growth (GDP growth close to 7%). The growth of the Indian market fuels the greed of manufacturers worldwide and particularly in the aerospace sector.
India - Russia: An enduring strategic partnership
India and Russia are strategic partners for a while. There are agreements in the aviation and defence industry in particular between own state companies: HAL (Hindustan Aeronautics Limited) on the Indian side and UAC (United Aircraft Corporation) on the Russian side. Today nearly 50% of the Indian armament is imported from Russia.
A partnership announced at Singapore Airshow 2016
As related by the Indian newspaper Economic Times (2/17/16), at the last Singapore Airshow a senior officer of Sukhoi Civil Aircraft Company (SCAC) has announced a partnership agreement with the Tata Group could be signed this year. This agreement will enable Tata Advanced Systems Limited (TASL) to provide SCAC spare parts for civilian aircraft Sukhoi Superjet 100 (SSJ100).
Through this partnership the Russian manufacturer could reach several objectives:
- Purchase spare parts at a competitive cost
- Diversify its supply chain
- Intensify its relations with the Indian industry
- Propose an "Indian" SSJ100 to Indian airlines.
SCAC hopes to sell nearly 50 SSJ100 in India within the next five years.
Sukhoi Civil Aircraft Company (SCAC)
Sukhoi Civil Aircraft Company (SCAC) was founded in 2000 by two shareholders:
- The Russian United Aircraft Corporation (UAC)
- The other Italian Finmeccanica Alenia Aermacchi.
The purpose of this company is to develop, produce and market modern regional aircraft with global reach. SCAC is now focusing its efforts on the Sukhoi Superjet 100 (SSJ 100) family.
Sukhoi Superjet 100 (SSJ 100)
The Sukhoi Superjet 100 is a modern regional aircraft of 98 seats that marks the rebirth of the Russian civil aviation industry in recent years. Assembled in the factory in Komsomolsk in Russian Far East, this aircraft flies since 2011 in airline, not only in Russia and CIS (former USSR) but also in Mexico.
Tata Advanced Systems Limited
Tata Advanced Systems Limited (TASL) is a subsidiary Aerospace and Defence of Indian conglomerate Tata Sons. TASL headquartered in Hyderabad, involved in systems integration, supplies aeronautical structures and a variety of weapons systems. The revival of the Russian civil aviation industry could extend through investment and collaboration with the private partner.
Make in India
The Indian government sees a dim partnership that would secure the Make in India program. Prime Minister, Narendra Modi, launched this initiative in September 2014. He was urging the industrial world to come "Make in India". This program also provides a framework for the central government and state governments to make easy the regulatory and administrative constraints and facilitate foreign direct investment (FDI).
While India is trying to develop its industry and is facing significant growth in its air market and that Russia suffers from a lower price of oil and the Western embargo, industrial companies of both countries are negotiating agreements that could be the sowing of future harvests.
Beyond this forecast partnership it happen or not, we detect the weak signal of a change in progress: The major aeronautical players in the twenty-first century will not be confined to Western Europe and North-America.
Frédéric Gayraud, Managing Partner, Prado Consulting