Boeing, Lockheed Martin Lose Bids to Supply Jets to IndiaMay 06, 2011

 

fighters

India selected two European companies as finalists to replace its ageing Soviet-era jet fighters, shutting out the United States for an order that could be worth as much as $10 billion. The American bids, along with those of Russia and Sweden, were turned away.

Boeing had proposed its F/A-18 jets while Lockheed Martin offered its F-16 fighters. India, however, plans to pick between the French Rafale fighter from Dassault and the Eurofighter Typhoon, which is built by a consortium of European companies.

After decades of mistrust, India has yet to warm completely toward the U.S. According to an article in The New York Times, American defense contractors have yet to win any big contracts in India.

“Seems to me that the odds were against the U.S. contractors from the beginning, and therefore the Indian Defense agency's decision was not entirely unexpected,” said David Thornburgh, Executive Director of the Fels Institute of Government at Wharton.

But this decision is especially difficult for the United States to swallow. The U.S. has worked hard in the past few years to build political and economic relations with India, including a well-received visit to India by President Barack Obama last November. During the visit, Obama plugged the Boeing and Lockheed Martin bids, and the companies counted on his clout to move to the next round of the competition.

“That decision clearly was disappointing to the U.S. contractors, and to the President, who argued in their support,” said Thornburgh.  “However, I'm not sure it was enough to cause any great loss of face for the President or a loss of support for him in the defense community.”

Both Boeing and Lockheed Martin have pitched other military hardware to India. The country is one of the few in the World that is increasing its military spending while others, including the U.S., are slashing budgets. The Times noted that India could buy between $50 billion and $80 billion of military hardware over the next five years.