Eyeing the 114 medium multi-role combat aircraft, Lockheed Martin along with Tata defense has announced to manufacture F-16’s block 70 (block 70 is the latest iteration of F-16’s in the world, Pakistan Air force has F-16 that is Block 50 and Block 60) wings in India. Lockheed Martin has committed to invest in the manufacturing ecosystem of high-quality defense tech like fighter jets which would play a very important role for the Indian government while placing a future order. These wings would be for other F-16’s that are operational and are in order for across countries. This means India would be exporting F-16 wings and would be an integral part of the F-16 supply chain.
The reason behind this strategic initiative by Lockheed Martin
The major reason would be guaranteeing an order for 114 MMRCA which costs anywhere upwards of $18 billion which is quite a significant amount for defense procurements. Apart from this SAAB is offering its Gripen E fighter aircraft, Dassault it’s Rafale jets, Boeing its F-A 18’s super hornets, Sukhoi with its T 57 PAK FA (5th generation fighter jets) and Mikoyan’s MiG 35. This is quite an intense competition to garner a major chunk in India with India’s very own Tejas Light Combat Aircraft. This was an aggressive step by Lockheed Martin to exercise its strategic initiative by being the first mover in the industry.
Cost is also a major factor in deciding whether it is beneficial for Lockheed Martin to manufacture in India. The company has nothing to lose from even if it doesn’t secure order by the Indian Air Force. But, this certainly puts a strong case in front of concerned authorities as an offset clause to localize manufacturing in India under PM Modi’s flagship scheme ‘Make in India’.
This is a plausible decisive decision for India
It’s a win-win situation for all the stakeholders in this bold but strategic move by Lockheed Martin. Tata’s are here to gain invaluable insights, expertise, and experience on the technical know-how of the precise defense manufacturing industry. Whereas, Lockheed Martin can take advantage of the value for money resource without stretching the company’s balance sheet. The world has acknowledged India’s quality wing manufacturing prowess.
In the greater scheme of things, this would bolster a good ecosystem and expertise for Indian engineers on how to manufacture and develop a future proof of high-quality defense equipment. This would ensure better skilled employment ration in India and would certainly drive foreign direct investments.
