ISMR July/August 2021 | Page 22

The final EDIDP financing cycle resulted in the award of support for the development of several new defence capabilities in areas as diverse and complementary as maritime security , cyber situational awareness or ground and air combat . In particular , 26 new projects with a budget of more than € 158 million were selected for funding , with a major focus on surveillance capacities ( both space-based and maritime capacities ), resilience ( Chemical Biological Radiological Nuclear detection , Counter-Unmanned Air System ) and high-end capabilities ( precision-strike , ground combat , air combat ).

In EDIDP 2020 , ten entities controlled by third countries are involved in selected proposals following valid security-based guarantees . In addition , two major capability development projects received a total grant of € 137 million in view of their high strategic importance . These were the MALE RPAS , also known as Eurodrone , supporting the development of a medium-altitude and long-endurance drone (€ 100 million ) and the European Secure Software-defined Radio (€ 37 million ), ESSOR , boosting the EU ' s armed forces interoperability by creating a European standardisation for communication technologies ( software radios ).

Investment and innovation

Continuous investment and innovation , with an eye on sustainability , skills and diversity , is key to maintaining market share in aerospace and defence markets .

ASD ( the voice of European Aeronautics , Space , Defence and Security Industries ) and the leaders of the European aerospace & defence industry in close cooperation with universities and VET organisations , have confirmed their full engagement in the European ‘ Pact for Skills ’ plan . This highlights the crucial need to collectively address unprecedented challenges due to the COVID crisis ; climate neutrality ; competitive environment ( rapid digitalisation , Industry 4.0 ); demographic ( aging staff ) and the failure to attract larger numbers of young talent and women .

The ambition is to collectively ensure a continuous and sustainable supply of skills with equality and diversity for around 600,000 employees in major companies , and their supply chains , to reach ecosystem sustainable growth .

“ In 2021 , we ’ ll continue to invest in skills and new technologies

“ The Indian defence market is on the cusp of a revolution , with the introduction of policy changes that promise to reduce programme delays and speed up acquisition that are vital to maintaining our strong positions on next-generation capabilities across the air , maritime , land and cyber domains ,” commented BAE Systems ’ chief executive , Charles Woodburn , in January this year .

“ In the U . S . market , we continue to stay well aligned to the U . S . National Defense Strategy and are investing heavily in modernising facilities and utilising new technologies . For example , we are deploying new virtual manufacturing and robotic welding in our combat vehicle production . While the new Administration ’ s priorities are not yet clear , we expect to stay well aligned given our work focused on combat vehicles ; precision-guided munitions ; naval ship repair and modernisation ; electronic warfare ; hypersonics ; space resilience and security .

“ In the UK , the announcement of increased funding for the Ministry of Defence provides welcome stability . The submission of the outline business case for Tempest is another significant step in this hugely exciting project to deliver a next-generation future combat air system . Working with our partners and supply chain , we are using cutting-edge technologies to transform how we design , develop and manufacture , helping to reduce time and cost . We will ramp up the number of people we have working on the programme throughout 2021 , including apprentices and graduates , as part of our commitment to recruit 1,250 trainees across the UK , despite the pandemic ,” he concluded . n

According to a new report , the “ Privatisation Thrust and Geopolitical Situation Transforming the Indian Defence Market ”, India ’ s defence market represents accessible cumulative capital and a revenue acquisition opportunity of US $ 306.95 billion from 2021 to 2030 . India aims to increase its defence production output to US $ 25 billion , including exports of US $ 5 billion . Simultaneously , the FY 2021-2022 defence budget ’ s capital allocation was hiked by 18.7 % to provide for modernisation .

“ The Indian defence market is on the cusp of a revolution , with the introduction of policy changes that promise to reduce programme delays and speed up acquisition . Provisions such as allowing leasing of equipment and waiver of offset requirements in government-togovernment deals also hold promise in the forthcoming decade ,” said the report .

India ’ s Ministry of Defence ( MoD ) has also set a target of doubling defence production and increasing defence exports five times by 2025 . To ensure that these goals are achieved , the MoD is pushing for enhanced private-sector participation to create a level-playing field . It is also taking other steps , such as corporatisation of the Ordnance Factory Board . Successful implementation of the envisaged measures are expected to have a long-lasting effect on the defence industry and the competitive landscape .

“ Defence Public Sector Undertakings ( DPSUs ) that have not delivered as per expectation have traditionally dominated the Indian defence market . As a result , India imports an estimated 70 % of its defence needs . The acquisition cycle has also long been blamed for being inefficient , resulting in delayed or cancelled contracts . As a result , Indian defence forces suffer from an inventory shortfall and operate legacy equipment . While the call for defence reforms has been a long-stated need , the effect of the face-off with China and the COVID-19 pandemic ’ s economic impact have now seen the government change its stance ,” said the report .

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