Indian defence equipment market has been rising with the growth of geopolitical tensions, increasing defence budget and the strong push for self-reliance under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives of the government. India has become one of the world’s top defence spenders and is now the third largest military spender in the world. Modernization of the armed forces, strengthening premium focus on domestic manufacturing, and alliances with key global defence companies are the game changers causing this growth. Policies favor local manufacturers in response to government’s efforts to bleach dependency on imports and bolster local production. This shift has received momentum with the Defence Acquisition Procedure (DAP) 2020, which puts an emphasis on procuring from the domestic industries. This implies the domestic defence manufacturing sector will grow beyond 10 percent CAGR in the coming years.
Across the combat aircraft, naval vessels, unmanned aerial vehicles (UAVs) and advanced artillery systems, the market has witnessed a tremendous rise in the demand. In this growth, India's defence public sector undertakings (DPSUs) are playing a crucial role. Furthermore, foreign direct investment (FDI) into the sector up to 74 per cent of foreign equity has been opened up for automatic route, with global players keen to set up joint ventures in India. The influx of foreign technology and expertise and rising R&D investments are expected to turn India into one of the major players in the global defence equipment market and the exports are likely to rise significantly in the following decade.
In this special issue, we introduce you to the top companies in this segment. Industry Outlook has identified the select few companies that have done particularly well with a high level of dedication. We have found that they have gone the extra mile in proving their commitment to excellence in an integrated manner.
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