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Privatisation Thrust and Geopolitical Situation Transforming the Indian Defence Market
The Market is at the Cusp of Revolution Due to These Mega Trends
29-Apr-2021
South Asia, Middle East & North Africa
Market Research
MG2C-01-00-00-00
AE01464-SA-MT_25401
Defence Public Sector Undertakings (DPSUs) that have not delivered as per expectation have traditionally dominated the Indian defence market. As a result, India imports an estimated 70% of its defence needs. The acquisition cycle has also been long blamed for being inefficient resulting in delayed or cancelled contracts. Consequently, the Indian defence forces suffer from an inventory shortfall and operate legacy equipment. While the call for defence reforms has been a long-stated need, the effect of the faceoff with China and the COVID-19 pandemic’s economic impact have now seen the government change its stance. The Defence Acquisition Procedure 2020, along with Atmanirbhar reforms, aims to increase private sector participation with a view to hold DPSUs to greater accountability.
The Indian Defence market represents accessible cumulative capital and revenue acquisition opportunity of $306.95 billion from 2021 to 2030. India aims to increase its defence production output to $25 billion, including exports of $5 billion. Simultaneously, the FY 2021-2022 defence budget’s capital allocation was hiked by 18.7% to provide for modernisation.
The Indian defence market is at the cusp of a revolution, with the introduction of policy changes that promise to reduce program delays and speed up acquisition. Provisions such as allowing leasing of equipment and waiver of offset requirements in government-to-government deals also hold promise in the upcoming decade. The Ministry of Defence (MoD) has also set a target of doubling defence production and increasing defence exports by 5 times by 2025. To ensure that these goals are achieved, the MoD is pushing for enhancing private-sector participation to create a level-playing field and is also taking other steps such as corporatisation of Ordnance Factory Board. Successful implementation of the envisaged measures will have a long-lasting effect on the defence industry and the competitive landscape.
Author: Rohit Beri
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of Strategic Imperative 8™ on India Defence Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Market Overview
Growth Drivers for Indian Defence Market, 2021–2030
Restraints to Growth for Indian Defence Market, 2021–2030
Executive Summary
Executive Summary (continued)
Key Predictions
Indian Defence Market, 2021–2030 Research Scope
Indian Defence Market Segmentation
Research Objectives and Questions
Indian Defence Industry Landscape—Public Sector
Indian Defence Industry Landscape—Domestic OEMs
Indian Defence Industry Landscape—Foreign OEMs
Growth Drivers for the Defence Market
Growth Driver Analysis for the Defence Market
Growth Driver Analysis for the Defence Market (continued)
Growth Driver Analysis for the Defence Market (continued)
Growth Driver Analysis for the Defence Market (continued)
Growth Restraints for the Defence Market
Growth Restraint Analysis for the Defence Market
Growth Restraint Analysis for the Defence Market (continued)
Growth Restraint Analysis for the Defence Market (continued)
Growth Restraint Analysis for the Defence Market (continued)
Defence Acquisition Procedure 2020
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Defence Acquisition Procedure 2020 (continued)
Key Programs—IAF
Key Programs—IAF (continued)
Key Programs—Indian Navy
Key Programs—Indian Navy (continued)
Key Programs—Indian Navy: Submarine Arm
Key Programs—Indian Navy: Naval Aviation
Key Programs—Indian Navy: Naval Aviation (continued)
Key Programs—Indian Army
Key Programs—Indian Army (continued)
Defence Budget 2021–2022—Overall Allocation
Defence Budget 2021–2022—Revenue Expenditure
Defence Budget 2021–2022—Capital Outlay
Defence Budget 2021–2022—Defence Pensions
Defence Budget 2021–2022—Summary
Forecast Methodology and Assumptions
Defence Market Size Forecast
Defence Market Segmentation
Opportunity Analysis
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—Foreign Participants (continued)
Competitive Landscape—Government Participants
Competitive Landscape—Government Participants (continued)
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)
Competitive Landscape—Emerging Indian Companies (continued)
Competitive Landscape—Emerging Indian Companies (continued)
Growth Opportunity 1: Leveraging on DAP 2020 and Atmanirbhar Reforms, 2021
Growth Opportunity 1: Leveraging on DAP 2020 and Atmanirbhar Reforms, 2021 (continued)
Growth Opportunity 2: High-value Acquisitions Programs, 2021
Growth Opportunity 2: High-value Acquisitions Programs, 2021 (continued)
Growth Opportunity 3: Tapping the Defence Exports Thrust by the Government, 2021
Growth Opportunity 3: Tapping the Defence Exports Thrust by the Government, 2021 (continued)
Growth Opportunity 4: Security and Digitalisation Market, 2021
Growth Opportunity 4: Security and Digitalisation Market, 2021 (continued)
Growth Opportunity 5: Integrated Aftermarket Services, 2021
Growth Opportunity 5: Integrated Aftermarket Services, 2021 (continued)
List of Exhibits
Legal Disclaimer
Abbreviations
India Negative Import List
India Negative Import List (continued)
India Negative Import List (continued)
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