We understand the Indian Aerospace and Defence scenario, and how to interpret these trends. 

India's Defence budget is gradually increasing

However, India is undergoing a Unspent syndrome with respect to its capital expenditure

Indicative trends suggest a curious curve in the last decade – while there are years when ‘actual’ capital expenditure has met targets, there are bouts of ‘unspent syndrome’ such as one to the tune of almost 40% of the capital expenditure for defence budget unspent in FY15-16.

A brief snapshot of the current situation is as follows:

Military Outlook (India)

  • Make in India & DPP campaign has been the game changer, dealing with several issues plaguing the Indian market
  • Over 75% of Defence equipment are imported.
  • Only about 20 – 30% of the yearly defence budget has been spent in the last 10 years. This is changing with the new Gov.
  • No favor for the private industry especially for MSMEs.
  • Over 50-75 companies have run into bankruptcy in the last few years

Civil Aviation Outlook (India)

  • The country is well on its way to become the third largest aviation market by 2020.
  • By 2020, passenger traffic at Indian airports is expected to increase to 421 million from 190mil
  • Airport infrastructure investment of US $ 11.4 billion under the Twelfth Five Year Plan (2012-17) 250 airports to be under operation by 2020.

More Specifically, Weapon modernization is the need of the hour

Make in India’s new IDDM category (Indian designed, developed and manufactured) is a game changer.

Make in India heightens need for Indian manufacturing experts

​Way forward

  • a) More weapons acquisitions are necessary, given the imbalanced nature of Indian arsenal heavily tilted toward obsolescence and shortage.
  • b) Given the manpower intensive nature of Indian armed forces and contemporary and futuristic security needs, a balanced approach to resources allocations for national defence must be considered.

Our offering focuses on these 2 points.