Bangalore all set to become India’s first and biggest aerospace industry hub, with a major aerospace park coming up near the city’s international airport, representing an investment of over $10 billion.
Basically, the local authorities have taken up an initiative to pull in more investment to convert the city into India’s aerospace hub. Karnataka’s investment commissioner, Maheshwar Rao stated that the state of Karnataka has a lot of advantages like availability of skilled manpower and engineering talent.
The capital city of Karnataka is also the home for important authorities like National Aerospace Laboratories, Defense Research and Development Organization and the Indian Space Research Organization. Acclaimed private companies like Boeing, Airbus, Honeywell and GE Aviation are also based in Bangalore.The city seem to have all it takes to be transformed into an aerospace hub.
Although India has a strong production base, it still continues to be one of the biggest importers of defence equipment in the world. However the recently introduced, offset policy of India requires every multinational company selling to India, to make a considerable investment in the country. Nearly 80% offsets will be focused in the aerospace sector.
Foreign aerospace companies will have to find partners in large and small scale enterprises in India. This will push Karnataka and more importantly Bangalore into the global aerospace map.
With the offset policy, a vast majority of aircrafts will be assembled in India. With the arrival of international companies to the country, it is estimated that nearly 75% of aerospace business will come out of the state of Karnataka in future. This tremendous growth will help the state, transform the city of Bangalore into a low cost manufacturing hub or a hi-tech design centre.