Given the foothold Aerovironment could gain in the Indian market, this opportunity could pave it’s path into the Indian market offering other systems that might be more suitable for other applications. The opportunity is likely to follow an agreement for local manufacturing of UAVs, signed by Dynamatic Technologies and AeroVironment Inc. Under the agreement signed in 2013 the two companies agreed to jointly pursue a number of business opportunities for potential customers including the Ministry of Defense and the Ministry of Home Affairs.

The cooperative programs are being discussed between India and the US under the Defense Trade and technology Initiative (DTTI) signed in 2012 but never implemented sofar. Frank Kendall, U.S. undersecretary of defense for acquisition, technology and logistics, will be making his fourth visit to India and meet Radha Krishna Mathur, and secretary (defense production) G Mohan Kumar prior to President Barack Obama visit to India that starts January 25. Kendall’s visit could promote collaboration on defense technologies and co-production of weapons systems in an effort to finalize the projects.

The US considers its defense dialog with India a central element of its ‘Asia Pacific Pivot’ – a core component of Obama’s Defense Strategic Guidance announced in January 2012.

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