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| CRA Study on DEF EXPO 2008 |
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| 'A report released by Credence Research and analytics (CRA) on the new emerging trends in Indian Defence Industry listed India as an important strategic and business partner for most of the developed countries. As part of the survey conducted during the D EF EXPO 2008 it was found that most of the countries looked at India as a huge market and potential client. |
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One of the interesting finding of the study was that not only main Industry players looked at India as a potential market but even medium and small size companies showcased their products and bid for the Indian Defence Industry. |
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As India is going through a transformation and is emerging as a formidable economic and political power. The need for greater self reliance is felt and this was visible during the DEF EXPO 2008 where even Indian Companies showcased their products and looked at the options for Joint Ventures and Tie Up’s to have their share in Defence production and procurement. |
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As per the Survey results Indian companies supported Govt’s Offset Policy and welcomed it as it gave them an opportunity to venture into Defence market, where as many international companies were divided on their opinion on the offset policy many thought of it as an bureaucratic hurdle which might support traditional players, few welcomed the Indian Govt’s offset policy and took it as a way for technology transfer and better business opportunity. |
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As every foreign company must spend 30% of the value on offsets goods purchased from Indian defence companies. Offsets will develop technical and manufacturing potential and they will also help to increase investments in domestic research and development. |
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CRA DEF EXPO survey finding shows that the India is not only emerging as a world’s largest importer but also as an important player in the international market as an exporter for its products. Supporting this view Minister of state for defence production Shri Rao Inderjit singh said “Once we are able to meet requirements of our services we would look at international Market as suppliers and exporters of our indigenous technology.” |
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Indian Armed forces look at this as a positive trend where in they have the option to choose the best product from the market and upgrade their technologies but the uncertainty expressed was on the bureaucratic delays and lobbying in the ministry for the RFP’s and delays in procurement projects. |
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The response to DEF EXPO though in terms of participation has been good with 30 countries participating and with about 45,000 business visitors, more than 20 important MOU’s signed and about more than 1200 business enquiries generated. |
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According to the CRA survey the response to DEF EXPO 2008 has not been as was expected as the fair only had two official working days, according to many participants having the fair over the weekend was not good for business as most of their senior level team flew back on the 18th evening and over the weekend many senior level people were not available. |
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The survey also highlighted that though there were as many as 16 seminars were conducted but other than few major seminar topics other seminar did not have enough participation. |
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The survey also bought out that the Traditional Indian Partners like Russia, Israel and France see Americans as tough competitors but are of the opinion that their product and their companies commitment is not restricted to the political relations between the nations which would at latter stage effect the procurement or maintenance of the goods. |
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Conclusion |
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| CRA survey establishes that India is a potential market for the international companies and all the leading companies are looking forward to have share of the growing Indian |
| Defence Industry.
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India also looks at international market as a potential exporter but would first like to have its armed forces self reliant and then target the international market. Changing trends have highlighted that the players in the industry are diversifying and would see more competition. |
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