India’s defence export has been dealt with a setback due to the decision taken by the Ministry of External Affairs (MEA) regarding the indigenous Dhruv Advanced Light Helicopter (ALH). The MEA has refused a Bolivian request for a line of credit to buy seven Dhruvs ALH from Bangalore-based manufacturer Hindustan Aeronautics Limited (HAL). According to sources, the MEA turned down Bolivia’s request for a line of credit on the grounds that it was for military equipment.
The Indian Defence Ministry has been making efforts to increase the dismal Indian exports in the defence sector and the current move by the MEA has been considered a serious blow to Indian defence export and its consistent efforts to make inroads into the South American market. Currently, Indian defence exports are a negligible $100 million per annum, roughly one per cent of the total imports. The export of seven Dhruvs, each worth $9 million would have effectively doubled defence exports.
Although India and Bolivia do not have close ties, Bolivia and the South American defence market holds great prospect for India and its indigenous products like the Dhruv ALH. Due to the lack of a single fixed-wing fighter aircraft, the Bolivian Air Force currently relies on the American UH-1H Huey helicopter, which will soon become obsolete. The Dhruv ALH provides a state-of-the-art alternative at a price 25 per cent cheaper than its alternatives. Hence, the Indian defence ministry feels that to squander away such an opportunity will be detrimental to exports.
India has already sold five Dhruvs to Ecuador in 2008 and Ecuador is reportedly considering a follow-up order. Chile, which came very close to acquiring the ALH Dhruv some years back, is also eyeing the Indian helicopter for its rugged, economical and state-of-art feature package.
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