Free Press Journal

Narendra Modi in France: Airbus to hike Indian outsourcing to $2 bn


Narendra Modi

Toulouse: Airbus Industrie has assured Prime Minister Narendra Modi that its Indian outsourcing will increase from $400 million to $2 billion over the next five years as part of the Indian government’s `Make in India’ initiative. External affairs ministry spokesperson Syed Akbaruddin tweeted: “500% increase in 5 years. @Airbus to PMA @narendramodi: Indian outsourcing to increase from $400 mil to $2 billion.”

“Make in India gains further momentum. $2 billion cumulative outsourcing planned by @Airbus from India by 2020,” he posted. Airbus’ commitment was conveyed to Modi during his tour of the Airbus headquarters in Toulouse, in southern France, where he flew down from Paris.

Accompanied by French Foreign Minister Laurent Fabius, Modi went around the Airbus A 380 Assembly Line Facility after being received by Airbus Group CEO Tom Enders as well as other members of the group executive committee.

An Airbus press release said that the group operates two engineering centres in India – one focused on civil aviation and the other on defence – and a research & technology (R&T) centre which together employ over 400 highly qualified people.

During the meeting with Modi, the group’s senior representatives conveyed their decision to expand these centres so that they can take on comprehensive design responsibilities for future Airbus group programmes.

Enders said that India already takes a centre-stage role in the group’s international activities.

“We want to even increase its contribution to our products. We support Prime Minister Modi’s ‘Make in India’ call and are ready to manufacture in India, for India and the world” he said.

The release said that Modi also attended a presentation of Airbus’ supplier network in India followed by an interaction with representatives of some of the key local Airbus partners.

“In 2014, Airbus’ procurement from India stood at over $400 million from around 40 companies (public and private) which together support more than 5,000 jobs locally. The top three procurement areas have been in engineering & IT services, aero-structures, and detailed parts & systems,” the release said.

It said Modi was informed that procurement from India was set to grow further as the group plans to award additional manufacturing and engineering work packages to local companies.

“The group is willing to set-up final assembly lines and establish supply chains and related infrastructure for military transport aircraft and helicopters in the country (India),” the release said.

It said that Airbus Defence and Space has submitted a joint proposal with Tata to produce the modern C295 aircraft in India as a replacement for the ageing Avro aircraft of the Indian Air Force.

The division also plans to develop and manufacture electronic sensors with a partner in India, and had advanced discussions to support Hindustan Aeronautics Ltd’s combat aircraft programmes.

Airbus Helicopters is in discussion with Indian companies to finalise teaming arrangements for various helicopter programmes, including the naval utility helicopter, the reconnaissance and surveillance helicopter as well as the naval multi-role helicopter.

“Airbus Group is confident links with Indian industry in the space sector will grow in the coming years through the cooperation on design and manufacturing of larger telecommunication satellites in India,” the release said.

It said that Airbus aircraft form “a significant part” of the fleets of all major Indian carriers and has over 70 percent market share.

Four daily A380 flights serve India at present and the “potential for the A380 to help Indian carriers win greater international market share with a flagship aircraft is enormous.”

Airbus Group, a global leader in aeronautics, space and related services, generated revenues of euro 60.7 billion in 2014 and employed a workforce of around 138,600.

Modi arrived in France on Thursday on the first leg of his three-nation tour which will also take him to Germany and Canada.