The show in the southern city of Bangalore takes off against a backdrop of stepped-up arms spending and rapid growth in commercial aviation in Asia's third-largest economy.

India is looking to modernise its military in keeping with its growing global stature and in the face of increasing assertiveness by China, in a South Asia region that New Delhi considers its sphere of influence.

Swedish defence and aerospace group Saab AB on Tuesday said it plans to open a research and development centre in India "soon," where it will add 300 engineers over five years.

The Pratt & Whitney unit of US-based United Technologies, meanwhile, is in talks with Indian companies to form five joint ventures to make engine parts in India, the unit's India head said on Tuesday.

Saab's JAS-39 Gripen is competing with Boeing's F/A-18 Super Hornet, Dassault's Rafale, Lockheed Martin Corp's F-16 and Russia's MiG-35 to win a contract from India for 126 fighter jets, valued at around $11 billion.

Cassidian, the recently renamed defence arm of EADS and a partner in the Eurofighter Typhoon, is also vying for the Indian fighter award. Eurofighter is a four-nation consortium of EADS, representing Germany and Spain, Britain's BAE Systems and Italy's Finmeccanica.