India is already a large commercial and defence aircraft market. With rising passenger traffic and increasing military and defence expenditures, the demand for aircrafts is expected to increase further. The Indian aerospace industry is one of the fastest growing sectors. India is expected to become the 3rd largest aerospace industry by 2020.
The Indian aerospace and defence market presents an attractive and significant opportunity for Indian and foreign companies across the supply chain. India has the third-largest armed forces in the world, and its defence budget is about 1.90% of its GDP. India is one of the largest importers of conventional defence equipment and spends about 40% of its total defense budget on capital acquisitions. About 70% of its defence requirements are met through imports.
With an allocation of US$ 53.5 billion to Defence Budget for 2017 – 2018 India is too bullish on Defence Sector.
Many Major global players Lockheed, Silkorsky, Dassault systems etc in Defence Manufacturing have entered in to JV with Indian organizations.
Lockheed has tied up with Tata Advanced Systems Ltd to bid for India’s $12-billion multi-role fighter jet deal, where it is competing with Gripen jets made by Swedish company SAAB.
India has replaced Japan to become the third largest domestic aviation market globally, recording a total of 100 million domestic flyers in 2016, as compared to 97 million flyers in Japan during the same period, according to Centre for Asia Pacific Aviation.
French technology solutions provider Dassault Systems is eyeing a double digit growth in the Indian market for the next five years, and is harping on digital transformation in manufacturing ecosystem across various industries.