Boeing pulling out all the stops for "Make in India" program

Boeing is pulling out all the stops to get India to buy the F-18, and eventually the Advanced Hornet. Far more than just moving an assembly line to India to build them, they plan on building a state of the art factory that will eventually be used to build the indigenous Advanced Medium Combat Aircraft. Some of the features on the Advanced Hornet will transfer to production of the AMCA. The factory will include aerostructures, engine, and avionics assembly in the factory.

Boeing planning new factory in India

Would be A HUGE DEAL if it goes through. Lots and lots of money. Any chance of the DOD blocking this deal? It is a lot of tech to be sending overseas.

a reply to: Pyle

According to Boeing, they already have government approval. India and the US have been getting extremely close lately. They're working on a nuclear powered aircraft carrier, and the US Navy has been helping them with their reactor, EMALS, and other equipment for it.

Will Pakistan be upping their Mig procurement and Nuclear program?

a reply to: Blackfinger

Pakistan is building a J-17 fleet. They've already built 100 aircraft, and may be building more. Other nations are expressing interest in it as well.

a reply to: Zaphod58

WoW, they are trying to fast track it then. Maybe want the deal done before the new admin comes in Jan?

Offshoring a few more US jobs, then?

a reply to: Astyanax

Well this would help build more meaningful relations with India which is the second most populous country in the world. Could open the door to more trade for american good.

a reply to: Astyanax

They have no choice. Indian law requires that a percentage of any contract involving foreign manufacturers be built in India, and that they have an Indian partner.

a reply to: Pyle

The new fighter deal will never happen that fast. Indian negotiations take years to get done.

a reply to: Zaphod58
That is kind of laws we should have as well.

a reply to: Xeven

Most of the time it's because of things you don't want to see happening.

originally posted by: Pyle
a reply to: Astyanax

Well this would help build more meaningful relations with India which is the second most populous country in the world. Could open the door to more trade for american good.

You see, this is interesting. India is a Democratic nation and a populous one at that.

In regards to partnering with India, I'm sure the criteria to build there was also an effort to get their own people educated enough through time and cooperation to eventually get their own indigenous technology rolling.

I wonder what would happen if we shifted our trade deals from China to India? Anyways that last question is for another thread, not trying to drift from the thread.

Military cooperation and industry is big business.

They have no choice. Indian law requires that a percentage of any contract involving foreign manufacturers be built in India, and that they have an Indian partner.

Lots of countries have laws like that. There are always means of getting round them, especially in a situation where the foreign investor has something the receiving country badly wants -- advanced military technology in this case.

Besides, Indian politics is so hopelessly corrupt that an investor with deep pockets can cut pretty much any deal he wants with the government there.

No, this is entirely about bringing manufacturing costs down to make the project affodable to India, the customer. The price difference will be paid, not by Boeing shareholders, but by workers in the USA.

I am all in favour. I am South Asian, believe in free trade and am generally pro-Indian. However, all the Trumpenfurters on this site had better start writing their hero (it's no use writing their Congressperson any more) and reminding him to keep his 'promises'.

Heh heh heh.

a reply to: Astyanax

India is in the process of cracking down hard on the getting around the law. The Rafael debacle upset a lot of people in the right places, especially when added to the number of military contracts canceled in recent years due to bribery scandals. They've gotten so blatant lately they have to crack down hard if they want a functional military.

Yes, costs will come down, which is another reason countries pass laws like this. It benefits them and the company. But they're still going to be looking at a couple billion dollars, depending on the total number of aircraft. They won't be able to save on the support costs.

a reply to: Zaphod58

India is in the process of cracking down hard on the getting around the law.

That's hilarious, though I'm sure you didn't intend it to be funny. But it doesn't have any bearing on my point, which is about Western outsourcing of even hi-tech manufacturing to cheaper countries.

a reply to: Astyanax

It's not outsourcing in this case. Outsourcing would be if they intend to build more than these aircraft in India. Boeing has done everything possible to keep the line in St Louis alive, down to reducing production to the lowest possible rate.

I got the feeling that this deal will be blocked under the next administration that wants to keep jobs in the US, let see what happen in the next few months.

We need the jobs here in the US we got enough insourcing from India already from students and professionals and they most often than not do not go back to India they stay in the US.

Boeing is keeping the main line of the F-18 exactly where it has been. With the deal they just signed with Kuwait, they have four to five years before it closes. The only aircraft they will produce in India are for India, who will be looking at 40-50 aircraft. The first of which will be produced in the US.

They are not outsourcing, they are not cutting jobs. This is no different than building a product in another country that will be used in that country.

a reply to: Zaphod58

They did something similar in Aus to build the original Hornets, not sure really what Aus got out of it as they don't go for indigenous air capability, upgrades and repairs, hence they didn't do the same with Super Hornet or Hawk LIFT.

I think Wedgetail took the Boeing but don't know if it was modified here or in US.

As you said previously, big problem with India is corruption, it may be a growing economy but it's still a divided country based on Caste. It needs a lot of growing up to do, not least a coherent defence strategy and not procuring small lots of different aircraft. I am sure the US has more to offer than just a few hundred aircraft if they get this right. Much bigger than military, their Regional and International Airlines will be expanding like China and Boeing will be in a good place to take advantage.

Personally I won't do business with another Indian company having experienced them in 3 defence contracts, too little hair left to pull out over the smiling snake oil salesmen, got one now who is the salesman for a well know Aussie Gas Company and I won't speak to him until he puts something in writing, I do enjoy turning the tables on him, oh yes we will give you the business...sorry, you were not competitive....he loses his temper very fast until another carrot dangles...I'm sure Boeing are shrewd but will watch this with interest if India don't change.