smestarz
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The defence market is getting smaller and now you will see amalgamation of many companies. For example you already seen how Eurofighter consortium developed. Also many of the American companies like Hughes and Mcdonnel Douglas are now part of big companies like Boeing and Lockheed Martin.@smestarz, is that even possible in defence industry? Like TATA bought Jaguar and LR.
With planes becoming more expensive and more capable, so fewer planes can do jobs of more nos of planes. So in way to give example 3 F/A-18 Hornets can do the same mission that required a squadron of planes during vietnam war. Also not many countries are able to order the numbers that they could as before. The cost of using and maintaining will be high
India should in a way privatise HAL and get out of it, Rather GoI should get into what are public priorities like maybe ensureing that they control important services like Water, electricity, fuel etc, Airlines and building planes is not really a priority. But that being said.in the 5 billion dollars what can we really get from Gripen? Gripen are buying off the shelf tech and building the plane very much like what HAL is doing. So, we really do not need to buy from companies like SAAB or Airbus defence of Dassault in India, But these companies expect that if they Make in India then indian Govt will have to ensure that it purchases the planes, or maybe in a way help the sales of these planes (after all if the planes are produced they have to be sold and after selling then only Make in India works) So we should be clear that India is where you can make, but that does not mean we have to be committed to buy it. We have Tejas FGFA and AMCA projects which are what india will invest in Soon companies might SAAB will actually want a partnership with defence companies in India but in true sense many indian companies like Tata or Mahidra are big enough to buy these firms.