India seeks defence technologies
The Indian base defense expenditure (excluding pensions) is expected to grow at a CAGR of 10.46% in 2021-2025.
India is expected to procure and invest in segments such as multirole aircraft, frigates, destroyers, corvettes, submarines, tanks, artillery guns, multi-barrel rocket launchers (MBRL), helicopters, surface-to-air missiles and unmanned aerial vehicles (UAV) among others, over the forecast period.
The Indian defense market has three major sectors: Airborne C4ISR, Multirole aircraft and Land Based C4ISR.
The Indian Army Modernization with an explicit emphasis on development and induction of new wheeled armored vehicles and the Futuristic Infantry Fighting Vehicle (FICV) program will drive the Indian Army defense modernization spending.
On the other hand, the thrust to induct LCA Tejas aircraft in greater volumes to replace the now obeselete MiG-21 aircraft will spur growth in the Indian Air Force defense expenditure, while the Indian Navy which accounts for the smallest portion of defense capital spending is anticipated to focus on modernization of its submarine arm and induction of new minesweepers.
Indian defence spending grew at a CAGR of 4.8%, increasing to US$47.3 billion in 2020 from US$39.3 billion in 2016.
This increase came from threats of wars at the Indian borders with China and Pakistan, said a report “The Indian Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2025” released 9 Apr 2020.
Going forward, the growth in defense capital expenditure is expected to be fueled by the need to stem the erosion in the country’s capabilities to counter Pakistan and China.
Over the last few years, India has consistently ranked among the leading defense importers worldwide. Between 2014-2018, India was ranked as the second largest importer of defense equipment, behind only Saudi Arabia.
The acquisition of defense equipment is mainly driven by the need to gain a significant technological advantage over Pakistan, while retaining a level of strategic parity with respect to China.
Leading players in India are BAE Systems PLC, BEML, Bharat Dynamics Ltd,
Bharat Electronics Ltd, Boeing, Goa Shipyard Ltd, Hindustan Aeronautics Ltd, Lockheed Martin Corporation, Mahindra Defence Systems, Mazagon Docks Shipbuilders Ltd, Ordnance Factory Board, Tata Advanced Systems Ltd, Thales and ACM. fiinews.com
