Aerospace & Defense
India has the third largest military in the world. It is also the world’s largest importer of weapons; imports comprise 60% of its defense equipment as of 2014. India’s defense budget is nearly $40 billion for the fiscal year ending March 2016, an 11% growth from the previous year. Over the next decade, it is projected that India will spend $100 billion on military modernization.
The breakdown of budget shares for the Indian military is:
- $16.8 billion for the Indian Army
- $3.8 billion for the Indian Air Force
- $2.5 billion for the Indian Navy
Additionally, the Coast Guard plays a major role in the Indian armed forces.
Foreign sales have been soaring in 2015. India has imported over $10 billion of American-made defense hardware since 2001, largely from Boeing; purchases approved include ten C-17 transport airplanes and Apache helicopters. The Indian Defense Acquisition Council approved the $762 million purchase of four Boeing P-8i long-range maritime patrol aircraft, adding to the eight that the Indian Navy already owns. The Indian government also made an offer to buy two Intelligence, Surveillance, Target Acquisition, and Reconnaissance (ISTAR) aircraft from Raytheon.
Many Indian firms take the lead in military vehicles. The Tata group has partnered with the country’s armed forces for over 50 years and produces defense equipment such as missile parts and army vehicles. Mahindra produces jeeps, supply trucks, and armored vehicles. In 2008, Hinduja Group created Ashok Leyland Defence Systems to manufacture armored vehicles. In 2014, Hinduja partnered with Larsen & Toubro to supply the Indian army’s Mounted Gun System artillery program. L&T also produces aerospace and defense equipment such as the Lakshya pilotless target aircraft, which is commercially manufactured for the Defence Research and Development Organization.
In addition to vehicle manufacturers, other domestic companies are significant in the industry. Bharat Forge has been working with the Indian military for 30 years. The company specializes in automotive components and components for artillery equipment.
To increase foreign direct investment into this industry, Prime Minister Narendra Modi implemented a policy allowing foreign firms to own up to 49% of joint ventures, up from the previous 26%. As of 2014, India received received $5 million of FDI in defense.
Amritt utilizes our experience and experts to work with you on the following core categories in our defense sales practice.
* Executive Training and Guidance
* Analysis of the Indian Procurement Process
* Defense Opportunity Identification, Development and Capture
* Offsets in India
* Supply Chain Engagements
* In-Country Staffing
* Amritt Aerospace & Defense Team