What are the main challenges for India, its defense industries and the armed forces in this century? How will India answer these challenges?

The Indian defense industry and armed forces have been continually adapting to the changing technological and security environment of the world in general, and with our neighbors in particular. We face pretty much the same challenges as most other defense industries around the world: catering to the most technologically sophisticated requirements of our defense forces. With the large pool of technically-qualified human resources, we have constantly tried to achieve self reliance in defense production and to equip our forces with state-of-the-art weapons and platforms.  

What are the main achievements of the Indian defense industry and its aviation sector?

We have a very robust and strong defense industrial base. We make our own warships, tanks, guns, fighter aircraft, and other arms and ammunition. Our defense industrial base is growing rapidly, and recently we permitted the private sector to enter the field of defense manufacturing. Hindustan Aeronautics Ltd. (HAL) has developed comprehensive capabilities in the design, development, testing, manufacture, repair and overhaul of helicopters, aero engines, avionics and aircraft accessories. Since the 1950s, a number of trainers, fighters and helicopters have been designed and developed by HAL. In addition, the manufacture of MiG series of aircraft under license from Russia enabled India to graduate into the manufacture of Sukhoi Su-30 aircraft under ToT. HAL's development of the Light Combat Aircraft (LCA Tejas) and the Advanced Light Helicopter (ALH Dhruv) in cooperation with Indian R&D agencies and over 200 companies in the country indicates the synergy between research organizations and industry - which can result in state-ofthe- art products.  

Since its birth in the middle of the past century, the I ndian aerospace industry has amassed a great technological and manufacturing potential, thanks to considerable investments of the government into self-reliant military production. How can this potential be used in the civil sphere, specifically civil aviation? How can Russian industrial partners help India in developing civil sectors of the hightech economy?

The Indian government is providing considerable support to the Indian industry to enter into the field of aeronautics. Information technology and software companies also have acquired expertise in these areas by undertaking work packages related to aviation design and optimization problems. Such expertise can develop into mutually beneficial relationships, and can be tapped for possible development of civil aviation projects in collaboration with Russian OEMs (original equipment manufacturers). The planned joint development of the Multirole Transport Aircraft (MTA) - an airlifter in the 20-metric ton category - with United Aircraft Corporation (UAC) as principal collaborator will strengthen India's design and development capabilities for civil aircraft.

The private sector has been repeatedly encouraged by the Indian government officials to invest in defense-related production. What can the private sector add to the existing system? Will private business eventually take the lead in the sphere of I ndian defense production?

It is our priority to develop our defense industrial base so that we can accommodate in-country production of the weapons and equipment required by our armed forces. In May 2001, the defense industry sector was opened up 100 percent for Indian private sector participation, with foreign direct investment of up to 26 percent. While the private sector is encouraged to enter defense production, capabilities in the governmental sector will continue to be maintained and modernized.

Defense Procurement Procedure (DPP) is coming in its third revision, starting with the updates in 2006, 2008 and now in 2010. What are the key principles of the DPP, along with its main goals? 

The Defense Procurement Procedure clearly lays down the methodology to be followed in defense acquisitions. It promotes transparency and provides a level playing field for manufacturers who clearly know the rules of the game - which cannot be changed midway. The document has spells out clear procedures that encourage foreign OEMs to collaborate with Indian companies in the manufacture of products indigenously.  

Military-industrial cooperation between India and Russia began in the early 1960s. Soon it will be approaching a 50-year mark. What do you think were the most important elements that India has derived from this lasting cooperation?

The story of Indo-Russian defense cooperation is a saga of reliable friendship, mutual trust and support, which has helped India build the foundation for a robust defense industrial sector.  

How do you assess the current state of the military-industrial cooperation with India and Russia?

The Indo-Russian defense cooperation is - and has always been - strong, to the mutual benefit of both the countries and their people. I would like this co-operation to continue.  

How will the Fifth-Generation Fighter Aircraft (FGFA) project of India and Russia be structured and executed?

The FGFA is joint development project in which we will have Indian and Russian designers and engineers working side-by-side from the beginning until its completion. The FGFA will be manufactured will be a joint product whose intellectual property rights will be held fully and equally by both parties. This is undoubtedly the most complex technological partnership between our two great nations. At the end of this project, we expect our designers and engineers to achieve the capability to design and manufacture future aircraft on their own. The special feature of Indo-Russian partnership is that it also seeks to develop capabilities in India.  

The Multirole Transport Aircraft (MTA) project appears to be a difficult one to get off the ground – despite a good level of political support by both sides. What factors have hampered the M TA, and does this project still have a chance to succeed?

The inter-governmental agreement (IGA) for codevelopment of the MTA was concluded in November 2007. According to the IGA, the development was planned through a joint venture to be set up in India. Initially, the IGA included a provision for possible utilization of a portion of the Indian debt to Russia as part of its share in the MTA's development. This clause was deleted in an IGA amendment signed in December 2009. Based on this amendment, the authorized organizations from the Russian side are the Federal enterprise "Rosoboronexport" and the joint stock company "United Aircraft Company (UAC) - Transport Aircraft" (UAC-TA). The shareholder agreement, memorandum of association, articles of association and funding methodology were discussed during Russian team's visit to India during December 2009. After signing the IGA, we were informed by the Russian participants that the process to obtain a formal approval from the Russian government for UACTA's participation has been initiated. Furthermore, the Russians informed us that the methodology of funding needs to be reviewed in view of transfer of funds to UAC from Russia. These issues will be further discussed. Both parties have agreed to name the joint venture: "Multi Role Transport Aircraft Ltd." a draft agreement for intellectual property rights has been handed over by India to Russia for study and further suggestions. Broad agreement has been reached on funding, authorized capital, the joint venture company's management structure, etc. During a meeting of the Indo- Russian Sub Group on Aviation in February 2010, a broad agreement was reached on shareholding structure. The momentum given by both the Indian and Russian partners highlights the commitment of both the sides to this prestigious project. The procedural aspects, which needed to be fine-tuned before the project can be realized, have taken some time. However, this is a long-term project. The MTA is very much underway, and you will soon see tangible progress.  

The Sukhoi Su-30MKI combat aircraft project, and that of the BrahMos supersonic cruise missile, are widely considered as success stories. Why do you think these particular programs progressed so well compared to many other attempts, which have proved less successful?  

The Su-30MKI project took off as a logical culmination of the conclusion of the MiG-27M manufacturing program in India. The familiarity of both sides with each other - along with a very strong will to succeed in realization of the project within the stipulated time schedules - helped in overcoming the initial difficulties by accommodating the viewpoints of both sides. The clarity in defining roles and responsibilities, as well as clarity in the commercial issues, helped in avoiding the usual pitfalls. Thus, these projects succeeded. We are ensuring similar due diligence in the MTA and FGFA to ensure success in these projects too.  

Despite its exemplary success, BrahMos remains the only prominent joint venture project involving the Indian and Russian defense industries. Can the BrahMos success lead to other applications in collaborative aviation projects between our nations?

You will soon see a BrahMos-like joint venture coming into being for the MTA. I am positive that the BrahMos joint venture’s success will be replicated in other projects too, further strengthening our long-standing friendly ties with Russia.