Lockheed Martin is a global aerospace, defense and security company headquartered in Maryland United States. The company reportedly has signed an agreement with Tata Advanced Systems on Monday in order to start production of F-16 falcon fighter jets in India with collaboration of Tata Advance Systems.
Tata is a group of companies based in India with over 103 billion dollars in revenues, the group has strong business segments like Tata motors which owns Jaguar and Land Rover brands, other segments are Tata steel and Tata Communications.
Lockheed is looking to win orders from Indian military worth billions, the company also planned to close its Texas plant and replace it with something productive like a plant in India.
Indian air force is looking to replace its old fleet of fighter planes that were from the era of Soviet Union. But Modi’s administration has directed the authorities that foreign suppliers will produce the jets in India with collaboration of local partner, it will help develop a domestic industrial base and cut on imports.
Saab company from Sweden is another competitor to make and sell fighter plane to India, Sweden reportedly offered to make Gripen fighter plane in India, it is not yet confirmed that Saab will start producing jets in India or not nor local partner is announced, though Saab pitched the Idea to Indian government by producing a jet which is the best alternative to F-16 jets.
After this successful initiative India would also have an opportunity to export F-16s that are prominent part of air force’s fleet around the globe, the joint statement by two companies informed. Around 3,200 of F-16 planes are being used by 26 countries and the model that is currently under discussion and offered to India is Block 70, which is the most modern of all predecessors of F-16s.
With this partnership India will be able to create more jobs in the local industry, strengthen the local defense and production industry, will be able to export planes, add state-of-the-art jets fleet to their national defense at lowest possible cost and ultimately charge their economy with strong focus on local industry development.
Lesson For Pakistan
Pakistan should learn with this deal that Tata made with Lockheed, Pakistan should make CPEC a win win situation for them. But currently it looks Pakistan in terms of dealing and diplomacy getting only peanuts from CPEC.