Impact of India on Aerospace and Defense - Thematic Research

Impact of India on Aerospace and Defense - Thematic Research

Summary

The impact of India is one of the emergent dominant trends in contemporary geopolitics

The impact of India refers to the role of India as a major defense consumer and one of the world’s leading importers of defense products. This includes numerous attempts at incorporating and developing domestic production and/or assembly.

The Modi government has prioritized the development of a robust domestic defense manufacturing base to curtail imports of expensive defense equipment. The government has changed procurement and FDI regulations to promote a greater level of private sector participation in the country’s defense sector and enhance the overall competitiveness of the Indian defense sector by promoting partnerships and attracting FDI in defense. Against this backdrop, the Indian MoD is anticipated to consistently increase its defense expenditure from $66.9bn in 2020 to $74.2bn in 2021. Over the period to 2030 period, Indian defense expenditure is expected to reflect a CAGR of 12.91% and increase from $74.2bn in 2021 to $120.6bn in 2025. Historic data shows that India invested a cumulative total of $302.2bn in the defense sector during 2016-2020, which is expected to increase to $482.1bn over 2021-2025. Increased tensions with China as well as Pakistan will drive this further, as will the need to replace legacy platforms.

Scope

- Demand in Indian aerospace and Defense will be driven by a number of geopolitcal factors such as Chinese and Pakistani development, as well as internal political incentives.
- This report looks at key products in Indian defense
- This report is part of our ecosystem of thematic investment research reports, supported by our “thematic engine”.

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