India is already a large commercial and defense aircraft market. With rising passenger traffic and increasing military and defense expenditures, the demand for aircraft 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 defense 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 defense budget is about 1.90% of its GDP. India is one of the largest importers of conventional defense equipment and spends about 40% of its total defense budget on capital acquisitions. About 70% of its defense requirements are met through imports.
With an allocation of US$ 53.5 billion to the Defence Budget for 2017 – 2018, India is too bullish on Defence Sector.
Many Major global players Lockheed, Sikorsky, Dassault systems, etc in Defence Manufacturing have entered into 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 the 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 the manufacturing ecosystem across various industries.