Defence Minister George Fernandes said on Wednesday India is keen on forging international collaboration as it is now planning to embark on creating a defence industrial base capable of producing world-class equipment at highly competitive prices.

Declaring open Aero India 2003 at Yelahanka the Indian Air Force station on the outskirts of the city, Fernandes said that by using the Indian infrastructure -- which technically meets global standards and is one of the most economical -- India and foreign companies could together reduce the overall costs and develop state-of-the-art aviation projects.

"Having done this, we will plan out a strategy of joint marketing," he said at the biennial event, which is among Asia's top aero shows, where 176 companies and organisations from 22 countries are participating.

Fernandes said India offers an opportunity for foreign companies for joint ventures, technology transfers and co-production for global markets.

With high degree of skill and relatively lower manpower costs, India provides an excellent opportunity for buyers and sellers.

He told the delegates to the fourth edition of the five-day exposition that indigenously produced supersonic Light Combat Aircraft, which is in its final tests to reach the threshold of serial production, has attracted global attention.

"In a joint venture with Russia, known as Brahmos, we have produced, tested and are in the process of inducting the supersonic cruise missile in all its three variants," Fernandes said.

He said having opened defence production to private sector, with Foreign Direct Investment up to 26 per cent, India looked forward to create a defence industrial base capable of producing world class equipment at highly competitive prices in cooperative partnership with industry in the private sector.

"The research and development work done in some of our defence laboratories is being made available to this sector for ‘productionisation.' In this context, we are keen to welcome international collaborations that are in conformity with our national goals and that serve mutual interests," the minister said.