19 September 2008 | Jake Kanter
India is set to become the centre of global engineering services, according to a top EADS buyer.
The country is already widely recognised as the world's IT services hub but, addressing delegates at a low-cost country sourcing conference in Prague yesterday, Philippe Advani said its aircraft manufacturing capabilities are strengthening all the time. The vice-president global sourcing network said that as such it has become a "key target" for the European aviation firm.
He explained the Indian private sector was taking great interest in the aviation industry. And because the country is the second biggest defence equipment importer in the world, it has a good understanding of the industry's needs.
Advani said EADS is restructuring the way it works. The company is selling many of its European manufacturing plants and outsourcing some of its operations. It aims to spend 60 per cent of its ?34 billion (£26.8 billion) in Europe and the remaining 40 per cent between the US and the rest of the world.
He also said India would become an important sourcing point and the organisation is aiming to set up a purchasing office in the country. "The aviation industry is fledgling in India and its access to raw materials is limited, but we hope it can fulfil our plans. India is moving from the IT hub of the world to become the engineering hub."