Bengaluru, the aerospace capital of India, retains rights to host the 11th edition of Aero India. How much of a costly gamble was it up on the MoD to even consider shifting Aero India from its traditional venue?
Surprise, Suspense and Delays – these three words are synonymous for success to those who have dealt with India’s defence sector. While success largely remains an elusive entity for many, these three words have undoubtedly haunted almost all of the competitors who have set their eyes on the pie in India’s lucrative multi-billion dollar defence industry. On course to rapidly modernising it’s military force, India is spending close to INR 1 Lakh crore per annum, making it one of the most preferred business arenas for global OEMs.
As leading OEMs make a foray into the market, sustained contact and exposure to both the users and local industry partners are a crucial requirement in their business model. Given the highly conservative approach followed by the country’s users, this requirement remains largely elusive, specially so for global MSMEs.
In this context, Indian defence trade shows such as Aero India and DefExpo, which were established for sustaining dialogue amongst stakeholders of the defence industry, have attained a vaunted status. With established precedence as bi-annual events, participation in terms of numbers at both these shows have witnessed a staggering growth since their inception.
Ever since the Indian Air Force (IAF) resurrected its search for an MMRCA (Medium Multi Role Combat Aircraft) platform through a RFI floated in July, 2018, doing business with India has become a key priority to global aerospace OEMs. Aero India – 2019, the 11th edition of India’s premier defence airshow, has thus earnestly gained greater importance at global levels.
Even as global players began groundwork for having solid presence at the trade show months in advance, the Ministry of Defence (MoD) made sure that preparations for Aero India – 2019 for all of the participants, regardless of their nationality, began earnestly around the SSD syndrome or the fear of suspense, surprise and delays, which has haunted almost every procurement program pursued by India.
As the Ministry of Defence (MoD) prepared for the launch of a defence industrial corridor in the Bundelkhand region of Uttar Pradesh in August, the defence industry watched with rapt attention. While the stakeholders definitely welcomed the MoD’s efforts in creation of a dedicated industrial corridor for defence manufacturing, the event had gained far greater importance with expectations of Defence Minister Nirmala Sitharaman setting a new precedence in the history of Aero India.
Since the Union Government’s decision to set-up an industrial corridor in UP, the State Government led by CM Yogi Adityanath had been lobbying with the MoD for shifting of Aero India from Bengaluru to an airbase in UP. The State Government had claimed that such a move would energise the proposed corridor in their state and CM Adityanath had on various occasions aired his state’s interest in hosting Aero India.
With CM Adityanath using the Aligarh even yet again to request for Aero India in UP, rumours floating in the corridors of South Block suggesting shifting of Aero India – 2019 to an airbase in Lucknow, the capital city of UP, gained much credence. The contemplated move, which many say had blessings right from the top of the country’s legislative arm, would mark the departure of Aero India from Bengaluru, a host for the event since its inception in 1996.
But when Defence Minister Nirmala Sitharaman took the stage at Aligarh, no such announcements were made and the much awaited decision about Aero India – 2019’s venue was left unanswered, leaving the fate of the participants in a precarious balance.
Even as the industry raised questions about the uncertainty, the MoD through a statement on 8 September quelled these concerns announcing that it had decided to hold Aero India – 2019 at its traditional venue in Yelhanka Air base at Bengaluru between February 20-24. With the announcement, the industry breathed a sigh of relief and mobilised its assets towards Aero India – 2019.
Undue and Uncalculated Risk
Undoubtedly it was a costly proposition on part of the MoD to have introduced undue and unwarranted uncertainty in regards to an event of the scale of Aero India. Having considerable international participation, it is crucial that the venue, timelines and basic operational parts of the event are worked out and revealed well ahead of time by the Ministry, thus easing the burden up on global participants.
For their participation in the event, companies begin their logistical arrangements months in advance, as both equipment and personnel have to be shipped from distant operational bases. Any last minute out-of-the-blue changes in the schedule would have thus thrown well calibrated timelines of many participants haywire, threatening their participation in the air show.
Traditionally, the MoD has followed its self established protocol of announcing the timeline and venue for the next edition of the event during the concluding address at the prior edition. {What I want to say here is that, Ministry of Defence has traditionally maintained a practise of announcing the dates and venue for the next edition in the concluding address of RM at the prior edition, as in 2017 Aero India conclusion speech should have had the venue and timeline for Aero India 2019.} This has, however, not been the case with Aero India – 2019 or DefExpo – 2018. It would be a welcome decision if the MoD reverts to this protocol, given that it is a precedent word over.
What warranted the MoD to even consider a proposal to shift Aero India out of Bengaluru for now remains a billion-dollar question. While official sources point that this was done largely to address the burden upon the air traffic plying from the nearby Bengaluru’s international airport, it is unlikely that the Ministry would have gone lengths at the last minute to address this minute hurdle. Was it a political move or was it an effort to after all energise the proposed industrial corridor? Nobody will never be able to deduce the true motives.
