With the aim of securing its strategic interests in the Asia-Pacific region, the Indian defense sector has grown considerably in recent years. Under the “Make in India” campaign, launched by the BJP government and led by the country’s Prime Minister, Narendra Modi, India’s manufacturing capabilities are in the process of being enhanced, presenting ample growth opportunities for Indian defense manufactures such as the Tata Group, Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BHEL), Mahindra Defence Systems (MDS), and Reliance Defence.
Indian defense market, is expected to register a CAGR of 8.94% during the forecast period.
Indian homeland security expenditure expected to reach US$20.4 billion by 2023.
India was the highest defense equipment importer over 2012-2016.
India expected to enter defense procurement deals with countries other than Russia.
Significant improvements made in defense acquisition procedures.
Foreign OEMs are participating in joint ventures in order to enter the Indian defense industry.
The Indian government has launched the Defense Procurement Procedure (DPP) - 2016 in an attempt to remove the inadequacies of India’s defense acquisition procedures. The new procurement procedures demand transparency in all defense-related procedures. Some of the key developmental areas that have been given importance are: speeding up of the decision-making process, simplifying contractual and financial provisions, encouraging domestic defense players to enter the market, and attracting foreign investors to establish manufacturing hubs in India.