The Future of the Indian Defense Industry 2018 - A $95.1 Billion Market by 2023 - ResearchAndMarkets.com
Jun. 08, 2018
DUBLIN--(BUSINESS WIRE)--Jun 8, 2018--The "The Future of the Indian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" report has been added to ResearchAndMarkets.com's offering.
Indian defense budget between 2014 and 2018, inclusive of military pensions, increased at a CAGR of 8.07%, and is expected to continue maintaining robust growth at a CAGR of 8.94% during the forecast period to reach a value of US$95.1 billion by 2023.
Prolonged unresolved border issues and rising tension with two neighboring nations, China and Pakistan, is expected to fuel the defense budget in the coming years; in addition to the country's need to replace its aging and outdated military hardware and technology.
Defense capital expenditure is expected to increase at a CAGR of 8.07% as India is expected to procure and invest more in segments such as multirole aircraft, corvettes, submarines, tanks, artillery guns, Multi Barrel Rocket Launchers (MBRL), helicopters, submarines, surface-to-air missiles, Unmanned Aerial Vehicles (UAV) and frigates, among others, during the forecast period. In addition, expenditure on IT and communications is expected to increase significantly, with a strong focus on enterprise applications, systems integration, and real-time mobile communications.
Furthermore, one of the key factors driving the Indian defense budget during the forecast period will be the implementation of OROP (One Rank, One Pension) and the 7th Central Pay commission, which is expected to further inflate the military's revenue expenditure.
The Indian Ministry of Finance (MoF) has significantly increased its expenditure on homeland security to counter a series of terrorist attacks and prevent the smuggling of arms and explosives, as well as domestic uprisings. Over 2014-2018, the country invested a total of US$56.3 billion in homeland security, which is expected to increase to US$88.6 billion over the forecast period. Due to the nature of the security threats that the country faces, the main opportunities for growth in homeland security are expected in the border security, police force modernization, aviation, mass transportation, and maritime security markets.
India was the world's top importer of military hardware over 2012-2016. The country's defense equipment imports, which accounted for 13% of global arms imports over 2012-2016, were three times larger than its closest rivals, China and Pakistan. The country relies on imports to meet 60% of its defense requirements, with the remaining 40% being met by domestic companies.
Companies MentionedBAE Systems PLC Bharat Dynamics Limited (BDL) Bharat Earth Movers Limited (BEML) Bharat Electronics Limited (BEL) Boeing Goa Shipyard Limited (GSL) Hindustan Aeronautics Limited (HAL) Lockheed Martin Corporation Mahindra Defense Systems (MDS) Mazagon Docks Limited Ordnance Factory Board Tata Advanced Systems Limited (TASL) Thales
Key Topics Covered
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
For more information about this report visit https://www.researchandmarkets.com/research/dxqt8p/the_future_of_the?w=4
View source version on businesswire.com:https://www.businesswire.com/news/home/20180608005246/en/
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Related Topics:Military Aerospace and Defense
KEYWORD: ASIA PACIFIC INDIA
INDUSTRY KEYWORD: DEFENSE OTHER DEFENSE
SOURCE: Research and Markets
Copyright Business Wire 2018.
PUB: 06/08/2018 06:23 AM/DISC: 06/08/2018 06:23 AM