Top US defense companies flock to India to clinch multi-billion contracts

US defense companies have flocked to India’s biggest aviation show with an ambition to break into a market which is traditionally dominated by their European, Russian and Israeli rivals. The air show will witness the largest ever US presence along with world’s top defense companies in order to clinch multi-billion contracts to modernize India’s ageing arsenal. However, the most lucrative contract is one worth up to $11bn to supply India with 126 fighter jets to replace its Russian Migs. As a matter of fact, the signing of the Indo-US civilian nuclear deal has paved the way for US defense companies to do business in India, which other wise prevented them to carry out business. The pact has allowed the US to sell nuclear resources, equipment and technology to India. The topnotch US defense companies such as GE Aviation, Honeywell, General Dynamics, Bell Textron, and UTC/Pratt & Whitney have come to attend and show their technologies and capabilities in Aero India. The companies are also being teamed up with local companies to facilitate trade as Raytheon has teamed up with Tata’s power’s strategic electronics division on defense linked technologies. Moreover, the US group is likely to face stiff challenges from rivals in Russia, Europe and Israel as these companies have deep rooted defense ties with India. The French aerospace industry has sent a 35-company delegation at the show and they are participating in the show since 1993. For the French companies like Dassault and Thales have a history of co-operation since more than a half century.