Indian Defense Market, Forecast to 2026

Indian Defense Market, Forecast to 2026

New Policy Dynamics, Market Requirements, and Programs Present Myriad Opportunities for Companies

RELEASE DATE
13-Jun-2017
REGION
Global
Research Code: 9AB0-00-4B-00-00
SKU: AE01243-GL-MR_20269

$1,500.00

Special Price $1,125.00 save 25 %

In stock
SKU
AE01243-GL-MR_20269

$1,500.00

$1,125.00 save 25 %

DownloadLink

Pay by invoice

ENQUIRE NOW

Description

According to SIPRI, India was the largest arms importer in the world during 2011–2015. The Indian government has revised the procurement policy after seeking responses from industry stakeholders. Frost & Sullivan has analyzed the competitive landscape of defense in India, which consists of public sector undertakings (PSUs), foreign defense companies, and emerging Indian companies. The Indian Armed Forces have not been able to spend the entire defense budget allocated, owing to straitjacketed procurement procedures and inherent delays; and the gap between allocated and actual defense spending has been increasing over the years. Frost & Sullivan expects the underspend in defense to decrease during the forecast period, as the government modifies policies to simplify procurement. Reduced underspending will drive defense budgets and the market will expand.

While the three services have had several modernization plans under way, some of these have been stalled due to the lack of clarity and coherence in procurement. The Indian government seeks to address this through the new Defense Procurement Policy (DPP) 2016 that is aimed at streamlining procurement and giving more leeway to suppliers, opening up Foreign Development Investment, allowing single vendor participation for tenders, and initiating a “Strategic Partner” model.

The government is outlining policies to convert India into a defense hub, with indigenous manufacturing being given the highest priority. Defense exports will be permitted and foreign direct investment (FDI) holdings have been tweaked to enable more foreign original equipment manufacturers (OEMs) to set up ventures in India. Several multi-billion dollar projects are expected to come to fruition. While a few of these projects will be executed through government-to-government (G2G) and off-the-shelf purchases, the majority will be through partnerships between indigenous companies and foreign OEMs. Offset regulations are being relaxed to speed up procurements and provide flexibility for suppliers while approaching tenders. The focus is on fast-track deals, tailored projects with Indo-foreign OEM partnerships, and involving micro, small, and medium enterprises. As per the Defense Procurement Policy 2016, the way ahead for India is by developing indigenous capabilities in defense through foreign collaboration. This is a critical time for foreign OEMs. The decisions made now, in terms of partnerships with emerging Indian firms, leveraging key clauses in the Defense Procurement Policy 2016 and understanding the track of Indian modernization, will help them win contracts and reap benefits. The report presents certain insights necessary to help companies proactively establish themselves in a position of competitive advantage in India.

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
Click image to view it in full size

Table of Contents

Key Findings

CEOs’ Perspective

Key Questions this Study will Answer

Country Outlook

Country Outlook—External Challenges

Country Outlook—Internal Challenges

Market Drivers

Drivers Explained

Drivers Explained (continued)

Drivers Explained (continued)

Drivers Explained (continued)

Drivers Explained (continued)

Market Restraints

Restraints Explained

Restraints Explained (continued)

Restraints Explained (continued)

Restraints Explained (continued)

Developments in the Indian Defense Industry

Developments in the Indian Defense Industry (continued)

Developments in the Indian Defense Industry (continued)

Procurement Process and Decision Makers

Procurement and Offset Dynamics

Procurement Categories and FDI Norms

New Procurement Policy and Industry Implications

New Procurement Policy and Industry Implications (continued)

Procurement Categories

Defense Budget Spending Analysis

Defense Spending Projections—Business as Usual Scenario

Defense Spending Projections—Active Implementation Scenario

Changing Industry Landscape

Partnership Road Map

Partnership Road Map (continued)

Partnership Road Map (continued)

Defense Technology Road Map and Opportunities—General

Defense Technology Road Map and Opportunities—General (continued)

Defense Technology Road Map and Opportunities—General (continued)

Defense Technology Road Map and Opportunities—General (continued)

Defense Technology Road Map and Opportunities—General (continued)

Defense Technology Road Map and Opportunities—General (continued)

Defense Technology Road Map and Opportunities—Air Warfare

Defense Technology Road Map and Opportunities—Air Warfare (continued)

Defense Technology Road Map and Opportunities—Air Warfare (continued)

Defense Technology Road Map and Opportunities—Land Warfare

Defense Technology Road Map and Opportunities—Maritime Warfare

Defense Technology Road Map and Opportunities—Maritime Warfare (continued)

Defense Technology Road Map and Opportunities—Marine Engineering

Defense Technology Road Map and Opportunities—Marine Engineering (continued)

Defense Technology Road Map and Opportunities—Marine Engineering (continued)

Case Study—Incentivizing Development of Defense

Case Study—Developing Indigenous Capability

Case Study—Indian and Foreign OEM Partnership

Key Modernization Programs Tracker

Key Modernization Programs Tracker (continued)

Key Modernization Programs Tracker (continued)

Key Modernization Programs Tracker (continued)

Key Modernization Programs Tracker (continued)

Key Modernization Programs Tracker (continued)

Key Modernization Programs Tracker (continued)

Key Modernization Programs Tracker (continued)

Key Modernization Programs Tracker (continued)

Competitive Landscape—Foreign Participants

Competitive Landscape—Foreign Participants (continued)

Competitive Landscape—Foreign Participants (continued)

Competitive Landscape—Foreign Participants (continued)

Competitive Landscape—Foreign Participants (continued)

Competitive Landscape—Foreign Participants (continued)

Competitive Landscape—Government Participants

Competitive Landscape—Government Participants (continued)

Competitive Landscape—Government Participants (continued)

Competitive Landscape—Emerging Indian Companies

Competitive Landscape—Emerging Indian Companies (continued)

Competitive Landscape—Emerging Indian Companies (continued)

Competitive Landscape—Emerging Indian Companies (continued)

Competitive Landscape—Emerging Indian Companies (continued)

Growth Opportunity—Leveraging Partnerships: DPP 2016

Growth Opportunity—Multiple Bids: DPP 2016

Growth Opportunity—Leveraging Micro, Small, and Medium Enterprises (MSME): DPP 2016

Growth Opportunity—Enhanced Performance Parameters: DPP 2016

Growth Opportunity—New Capabilities

Strategic Imperatives for Success and Growth

Conclusions and Strategic Recommendations

Legal Disclaimer

The Frost & Sullivan Story

Value Proposition: Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
According to SIPRI, India was the largest arms importer in the world during 2011–2015. The Indian government has revised the procurement policy after seeking responses from industry stakeholders. Frost & Sullivan has analyzed the competitive landscape of defense in India, which consists of public sector undertakings (PSUs), foreign defense companies, and emerging Indian companies. The Indian Armed Forces have not been able to spend the entire defense budget allocated, owing to straitjacketed procurement procedures and inherent delays; and the gap between allocated and actual defense spending has been increasing over the years. Frost & Sullivan expects the underspend in defense to decrease during the forecast period, as the government modifies policies to simplify procurement. Reduced underspending will drive defense budgets and the market will expand. While the three services have had several modernization plans under way, some of these have been stalled due to the lack of clarity and coherence in procurement. The Indian government seeks to address this through the new Defense Procurement Policy (DPP) 2016 that is aimed at streamlining procurement and giving more leeway to suppliers, opening up Foreign Development Investment, allowing single vendor participation for tenders, and initiating a “Strategic Partner” model. The government is outlining policies to convert India into a defense hub, with indigenous manufacturing being given the highest priority. Defense exports will be permitted and foreign direct investment (FDI) holdings have been tweaked to enable more foreign original equipment manufacturers (OEMs) to set up ventures in India. Several multi-billion dollar projects are expected to come to fruition. While a few of these projects will be executed through government-to-government (G2G) and off-the-shelf purchases, the majority will be through partnerships between indigenous companies and foreign OEMs. Offset regulations are being relaxed to speed up procu
More Information
No Index No
Podcast No
Author Arjun Sreekumar
Industries Aerospace, Defence and Security
WIP Number 9AB0-00-4B-00-00
Is Prebook No