India is the fourth largest economy of the world in purchasing power parity; with continued predicted growth of 9% GDP it is a key regional defense player. The country is also Asia’s largest arms buyer and has one of the largest militaries that depend on imported equipment.
However, doing business in India is a challenge in terms of the country’s cultural diversity, business legacy and bureaucracy.
Defense Aerospace Sectors
As a result of India’s market growth and liberalizations policies, India is now demanding the latest technology in both Civil and Defense Aerospace sectors and is able to pay for this.
The Indian Defence sector is one of the fastest growing markets as well as the third largest importer of defense hardware in the world. According to the Confederation of Indian Industry (CII), India is currently planning a defense spend of $30 billion over the next 5 years , with the following major program requirements:
- Indian Air Force - over 100 major projects
- C3, upgrades to existing assets, new fixed and rotary wing aircraft, simulators, improved air defence (sensors and shooters), EW, mobile ATC, AAR
- Indian Army - over 30 major projects
- New rotary wing and upgrades to existing assets, UAVs, air defence
- Indian Navy - 18 major projects
- SATCOM, upgrades to existing assets, new rotary wing, AJT and LRMP aircraft, UAV and simulators
- Indian Coast Guard - 6 major projects
- Rotary wing, surveillance radars, MPA, UAVs
The Indian Civil Aviation sector offers major opportunities today: domestic airline business in India will reach 50 million passengers by 2008 (still a fraction of the travel on Indian railway network). To keep pace, domestic airlines are buying & leasing a tremendous number of aircraft. Boeing estimates that India will need 856 new aircraft between 2006 and 2026, valued at $72 billion. To maintain the aircraft fleets acquired, the cumulative value of Maintenance, Repair, and Overhaul (MRO) services during the same period will be at least $2 billion.
Other opportunities in the civil sector span: small jet and turbo aircraft; long-range and VIP helicopters; acquisitions/purchases/leasing of aircraft; components - selling and/or outsourcing offshoring; electronics/avionics; maintenance and testing; raw materials (sheet metal and forging); software and Training (equipment and consultancy).
India also has a broad-based space program with launch vehicles, satellites, control facilities and data processing. The country’s remote sensing, communications and meteorological satellites are world-class. By the end of the decade, India is poised to join the elite group of six countries / organisations with a geo-stationary launch capability.