Govt wants EADS to set up facilities in India

New Delhi: New Delhi is all out to woo aviation behemoth European Aeronautic Defence and Space Company (EADS), the parent of Airbus, to set up its facilities in India rather than China. The Prime Minister’s Office (PMO) is trying hard to win away the company after cancelling its $600-million deal to buy aircraft from Eurocopter.
“We want companies like EADS and Boeing to shift their manufacturing bases to India. To facilitate this, we would provide them conducive business environment, both regulatory as well as manufacturing, in the country,” a government official told ET.
With the euro appreciating against the US dollar, the top aircraft maker is planning to source more parts and components from countries like India, China and Brazil. EADS sources aircraft components worth about $25 billion annually from across the world.
According to sources, a high-level meeting in this regard would appraise the matter in the capital. Relaxing the existing foreign direct investment (FDI) cap from existing 26% in the defence aircraft production would also be discussed.
02/03/08 Nirbhay Kumar/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Foreign Apr 2008