Indian aerospace & defense market has been gaining substantial momentum in recent years, with the country becoming the largest importer of defense equipment in the world and achieving the sixth ranking globally in 2015, in terms of military spending. As per reliable sources, foreign direct investments across the military sector amounted to approximately USD 5.02 million from April 2000 till June 2015, while the defense budget of the country for 2016-2017 was estimated at USD 38.32 billion. It has been reported that India imports nearly 60% of its defense material from foreign countries while manufacturing the rest in the country itself. The government has been striving to ensure maximum defense equipment procurement from the country itself and has set a target to increase its percentage from 40 percent to 70 percent over the next decade – a fact which would have a massive impact on Indian aerospace and defense industry in the ensuing years. With overall capital expenditure on the defense sector expected to reach USD 75.38 billion by 2020, Indian aerospace & defense market is anticipated to witness huge gains over 2017-2024.
India aerospace & defense market size, by air solution, 2016 & 2024 (USD Million)
The ‘Make in India’ concept has garnered immense popularity in recent times, since its inception three years ago, which analysts claim will lead to the expansion of Indian aerospace and defense industry. The new initiative proclaimed by the Indian government has prompted the regional players to make sizable business investments, which have had a considerable impact on Indian aerospace & defense market size.
The impact of strategic alliances on India aerospace & defense industry size
Technological innovations have revolutionized the India aerospace & defense market
The military forces - navy, air force, and army are expected to make notable contributions toward Indian aerospace & defense market revenue in the ensuing years. The escalating requirement for effective & eco-friendly air jets to efficiently perform rescue operations & repairs in cases of emergency will impel the product penetration across the Indian air force. The robust requirement for homeland security will result in a massive demand for aerospace & defense supplies, which would commendably impel India aerospace and defense industry share.
The government has been supporting large-scale R&D activities to augment Indian aerospace & defense market. The ‘Make in India’ program, for instance, has attracted huge investments from public as well as private sectors in the country. The governmental efforts are expected to have favorable repercussions on the development of Indian aerospace and defense market in the near future. Based on the assessment of the current business scenario, experts have claimed that the business will garner the revenue of over USD 23 billion by 2024.