As the United States-India defense partnership continues to grow , so do the opportunities for Washington state aerospace companies looking to expand into the Indian defense market . In 2018 , the U . S . Department of Commerce announced Tier 1 Strategic Trade Authorization status ( STA-1 ) for India , enabling a license exception for many U . S . exports to India subject to the Export Administration Regulations ( EAR ). Subsequent project agreements between the U . S . and India will allow significant steps towards deepening defense technology collaboration between the two nations through the co-development of defense equipment .
Market challenges
As in other countries , the pandemic has taken a toll on the Indian Aerospace sector in both airport infrastructure development and privatization , as well as growth potential for new routes . In addition , it has resulted in construction delays , procurement process ambiguity , lengthy environmental reviews , and land acquisition issues . The Indian defense market , which offers substantial potential , can also be challenging and requires patience and persistence .
U . S . suppliers must be cognizant of the Indian propensity to drive down prices . Many procurement decisions are driven by lowest cost , L1 bids . Defense procurement time frames are long , have limited transparency , and are faced with challenging regulations such as offset requirements . Payment delays are also not uncommon and it is strongly advisable to find reliable partners on the ground who can help mitigate these issues and facilitate deals .
Breaking into new markets or creating further expansion can be overwhelming but the Washington State Department of Commerce is here to help . We have a team of international consultants to support small businesses in exporting to new markets or further expanding into existing markets . Small businesses can receive market intelligence reports and business-to-business matchmaking for over 20 markets worldwide , including India .
For more information on the webinar or opportunities in India , please contact Amandine Crabtree , amandine . crabtree @ commerce . wa . gov , or Nicole Gunkle , Nicole . gunkle @ commerce . wa . gov .
50 NORTHWEST AEROSPACE NEWS