India aerospace & defense market is expected to grow at a significant pace owing to growing need for the modernization of Indian armed forces. The modernization drive aims to leverage advanced military technology to improve operational capabilities. Need for improvement in areas such as battlefield support systems, situational awareness, non-lethal weapons, and artificial intelligence is expected to drive the India aerospace & defense market over the next seven years.
The government is increasing defense budget and has undertaken several projects in line with the Make in India campaign. For instance, as a part of Infantry Vision 2020, the government has started Future Infantry Soldier as a System (F-INSAS) program to enhance the optical, electro, and situational capabilities of a soldier. Increasing investments in research fields including nanotechnology, directed energy weapons, and NBC warfare are anticipated to fuel the India aerospace & defense market growth.
Changing geopolitical situations on the country’s borders is necessitating continuous improvement in defense equipment. This is propelling new procurement to replace obsolete equipment to bring in readiness. Growing demand is attracting many local industry participants such as Larsen & Toubro, Tata, and Mahindra, in addition to global players including Boeing, BAE Systems, and Israel Aerospace Industries. The entry of newer players in the industry is anticipated to increase competition and drive innovation, thus driving the India aerospace & defense market over the next seven years.
Growing proliferation of visual devices to train aircrew and maintenance staff is expected to propel the modelling, training, and simulation (MTS) services growth. Regional technology players such as Tata Technologies are partnering with India aerospace & defense market players to deliver optimized solutions across modelling and simulation services.
India Homeland security is expected to witness significant growth owing to the increasing internal unrest and terrorist threat. The budgetary allocation for the Ministry of Home Affairs reached about USD 20 billion by 2017-18. The recent violence in Punjab and Haryana states over the arrest of the Dera chief has thrown light on equipping internal security personnel with high-quality equipment. Initiative such as Safe City will propel the homeland security in the country by leveraging technology to reduce crime rates.
Aerospace & Defense equipment is extensively used by the Indian military, navy, and the air force. Thus, the large -scale production of aircrafts, communication equipment, helicopters, and missiles in the country have contributed significantly toward augmenting India aerospace & defense market revenue. In addition, the escalating need for increasing the aircraft fleet size with the inclusion of supporting aircrafts such as rescue, emergency & repair, and medic aircraft have been forecast to impel the business landscape.