SAAB's Gripen Fighter Jet Program Faces Setback in India After Split With Adani Group

SAAB, the Swedish aerospace and defence giant, is facing a significant challenge in its efforts to establish a foothold in India for its Gripen fighter jet program. The company, which has been vying for the Indian Air Force's (IAF) Multi-Role Fighter Aircraft (MRFA) contract, finds itself without a local partner following the end of its collaboration with the Adani Group. This development could delay SAAB’s plans to localize production and enhance its competitiveness in the Indian market.

A Partnership Cut Short

The partnership between SAAB and the Adani Group was announced in 2017 as part of SAAB's broader strategy to manufacture the Gripen fighter jet in India under the "Make in India" initiative. However, their Memorandum of Understanding (MoU) was not renewed in 2019, leaving SAAB without a local manufacturing partner. This split presents a major roadblock for the company, which now has to identify and form new alliances to meet India's stringent requirements for indigenous defence production.

Gripen's Technological Edge

The Gripen fighter jet, one of the world's most advanced multirole combat aircraft, has several standout features:

• Advanced Avionics: Equipped with AESA radar, Infra-Red Search and Track (IRST), and advanced data link capabilities.
• Multi-role Flexibility: Capable of handling air-to-air, air-to-ground, and reconnaissance missions.
• Low Operational Cost: Among the lowest in its class, making it an attractive choice for air forces seeking cost-effective yet advanced technology.
• Weaponry: Compatible with a range of modern weapons, including Meteor Beyond Visual Range (BVR) missiles, and can integrate indigenous weapon systems if required.
• Short Turnaround: Designed for quick turnaround times in combat situations, allowing high mission availability.

SAAB has expressed its willingness to fully transfer technology to India if it secures the MRFA contract. This includes the integration of Indian systems and weaponry onto the Gripen platform, further enhancing its appeal to the Indian defence ecosystem.

The Urgent Need for a New Partner

The Indian government's defence procurement policies under "Make in India" and "Atmanirbhar Bharat" stress the importance of local manufacturing and partnerships. SAAB’s Gripen program, which heavily relies on local production to meet these policy requirements, now faces a critical challenge. Without a domestic partner, the company risks falling behind in the competition for the MRFA contract, which is estimated to involve the procurement of 114 fighter jets.

Potential partners could include Indian defence giants like Hindustan Aeronautics Limited (HAL), Bharat Forge, or Tata Advanced Systems. However, these firms are already engaged in partnerships with SAAB's competitors, including Lockheed Martin and Boeing.

Stiff Competition in a Crowded Market

SAAB’s competitors have made significant inroads into the Indian market. Lockheed Martin, for instance, has partnered with Tata Advanced Systems to produce the F-21 fighter, a customized version of its F-16 designed for India. Similarly, Boeing has collaborated with HAL and Mahindra Defence Systems for its F/A-18 Super Hornet and other platforms.

These companies not only bring robust global supply chains but have also demonstrated a strong commitment to localizing production, giving them an edge over SAAB. If SAAB does not secure a new partner soon, it risks losing out in a highly competitive environment.

A Path Forward

Despite the setback, SAAB remains optimistic about its prospects in India. The company has reiterated its commitment to indigenizing the Gripen platform, with plans to set up full-scale production within three years of securing a contract. This would include not just the assembly of the airframe but also the development of critical systems and software in India.

Additionally, SAAB’s emphasis on rapid technology transfer aligns well with India's strategic goals of self-reliance in defence manufacturing. This approach could still position the Gripen as a strong contender, provided SAAB finds the right local partner.

Conclusion

SAAB's Gripen fighter jet program in India is at a crossroads. While the company boasts cutting-edge technology and a clear strategy for indigenization, the absence of a local partner places it at a disadvantage in a competitive market. To stay in the race for India’s MRFA contract, SAAB must act swiftly to secure a new partnership. The stakes are high, and the success of the Gripen program in India will depend on how quickly and effectively SAAB can adapt to this evolving scenario.