In the midst of the smog and pollution concerns, there were a couple of news items that caught my attention in the recent days. In what is likely to be the first major ‘Make in India’ project in defence, the defence ministry is about to sign a deal with the US government to assemble 145 BAE Systems M777 155mm/39mm calibre lightweight howitzers in India. Estimated to be worth $700 million, the deal is being done through the Foreign Military Sales route and a draft Letter of Acceptance (LoA) has been agreed upon between the Pentagon and the defence ministry.

The make in India defence deals are a step in the right direction, and what we need is employment for the youth. I disagree strongly with folks who say that Modi is a lot of expensive travel, I think the PM has to travel to fulfill the sales job of pitching these initiatives to investors. The education that comes from meeting with world leaders and current world views is a big plus, which his old buddies in the parivar do not benefit from. So if you see a rift these days between Modi the PM who wants to move the country forward and his old friends from in the parivar, the travel probably is a factor. So I am all for the PM’s travel though one might say argue that it is an expensive education/sales and marketing expenditure.

But I always add two caveats when major announcements around deals are announced.

1. Money in the bank is money in the bank aka deals on paper are deals on paper until we see boots on the ground in terms of the factories being built and employees being hired.

2.Deals can work only in an environment of peace and stability. I am not sure any of these foreign investors would like to make investment in the North East or Kashmir. No amount of deals signed can translate into action if regressive elements in his party create an environment of turbulence in the social fabric.

I sincerely hope that more manufacturing deals come to India.