The Indian Market and Israel – More Hurdles
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By ARIE EGOZI
The ‘Make In India’ policy has put new hurdles in the way of Israeli defense companies who try to make business in India.
In a recent development, France has agreed to an Indian government demand to invest a part of the multi-billion dollar Dassault Rafale fighter jet purchase in ‘Make In India’ program as part of the deal.
“The French manufacturers of the Rafale fighter will commit to making investments worth $4.5 billion in the Indian industry as part of the deal. The French side has accepted in principle a 50% offset clause, which requires the Rafale manufacturers to invest half the deal value in India, the government will also liberalize its stringent defense offsets policy to address some specific concerns of the manufacturer,” Economic Times news daily quoted an unnamed French official as saying.
“A top team from Paris, led by Engineer-General Stephane Reb, director of the International Directorate of the DGA (General Directorate for Armament) of the French ministry of defense will be in Delhi on Tuesday to work out final price negotiations and take the deal to the final stage,” the news daily reported.
The investments in India could include civilian projects that companies like Dassault and Thales are pursuing. One of the ‘Make in India’ investments is likely to be in the manufacturing of components of the French Falcon executive jets as well as in the smart city projects of Thales.
The rush of American and European companies to India is accompanied by technology transfers and off set agreements. “This puts very big new hurdles on the way of Israeli companies into the huge Indian market,” an Israeli source told I-HLS.
