Buy the report "Future of the Indian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018" at US $1250 for a Single User PDF License from RnR Market Research Reports Library.
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Indian Defense Industry Market Attractiveness Forecasts to 2018
1. RnR Market Research Offers “Future of the Indian Defense Industry – Market
Attractiveness, Competitive Landscape and Forecasts to 2018” Report at US$ 1250
(Single User License). The report got published in Mar 2013 & Contains 165 Pages.
Synopsis
This report is the result of SDI’s extensive market and company research covering the Indian defense
industry, and provides detailed analysis of both historic and forecast defense industry values including
key growth stimulators, analysis of the leading companies in the industry, and key news.
Introduction and Landscape
Why was the report written?
The Future of the Indian Defense Industry – Market Attractiveness, Competitive Landscape and
Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted
by foreign original equipment manufacturers (OEMs) to gain a market share in the Indian defense
industry.
What is the current market landscape and what is changing?
The Indian defense market offers numerous market opportunities to both domestic and foreign
manufacturers. As one of the largest defense equipment markets in the world, the country is expected to
spend US$119.3 billion on capital acquisition alone during the forecast period. In the next two years, the
country is forecast to spend a significant amount of money on homeland security, intelligence, and cyber
security, primarily due to an increasingly hazardous geopolitical environment, the threat of terrorism, and
internal security concerns. Some more factors that are likely to influence the future growth course of the
defense sector in India are further development of the defense procurement process, the formation and
implementation of a defense industrialization strategy to coordinate the use of offsets, transfer of
technology, FDI and revisions to the taxation regime, and incentives.
What are the key drivers behind recent market changes?
Indian defense expenditure is primarily driven by the need to replace the country’s aging military
hardware and to protect India from its hostile neighbors. Strong economic growth has also fueled India’s
defense industry growth. Moreover, given that the Chinese market is closed to the world, India remains
the primary place within Asia where major defense systems are sold.
What makes this report unique and essential to read?
The Future of the Indian Defense Industry – Market Attractiveness, Competitive Landscape and
Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from
2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key
global markets and provides a detailed understanding of emerging opportunities in specific areas.
Inquire for Discount @ http://www.rnrmarketresearch.com/contacts/discount?rname=83468
Key Features and Benefits
- The report provides detailed analysis of the current industry size and growth expectations from 2014 to
2018, including highlights of key growth stimulators, and also benchmarks the industry against key global
markets and provides a detailed understanding of emerging opportunities in specific areas.
- The report includes trend analysis of imports and exports, together with their implications and impact on
2. the Indian defense industry.
- The report covers five forces analysis to identify various power centers in the industry and how these
are expected to develop in the future.
- The report allows readers to identify possible ways to enter the market, together with detailed
descriptions of how existing companies have entered the market, including key contracts, alliances, and
strategic initiatives.
- The report helps the reader to understand the competitive landscape of the defense industry in India. It
provides an overview of key defense companies, both domestic and foreign, together with insights such
as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
- Introduced under the DPP 2005 and developed further in 2012, the offset policy encourages the
indigenous Indian defense industry to play a major role in meeting the needs of the armed forces by
restricting FDI to 26%. It is expected that small- and medium-sized enterprises will benefit from the
offsets, leading to a larger presence of private companies in the defense industry. Additionally, the
revised DOG’s 50% indigenous requirement and timeframe to achieve that will have a negative impact on
the domestic defense industry. It is a known fact that very few Indian companies can offer products with
50% or more indigenous content. The stipulated time frame to achieve the same is not encouraging either
as Indian companies are now required to prove the indigenous content at the time of submission of
technical bids, which implies they need to have 50% indigenous content even before the actual
production begins. Far from being realistic, this move also discourages any Indian company that wants to
compete at the global level.
- Insufficient information and the lack of clear future plans have been key challenges for both the private
sector and foreign companies, in planning the development of research and development technology or
the formation of joint ventures. Although the MoD has agreed to provide a public version of the long-term
plan, its effectiveness remains to be seen. One of the key objectives of DPP 2009 is to enable
transparency and integrity in all defense industry acquisitions. To ensure this, the Defense Acquisition
Council (DAC), India’s supreme defense procurement agency, has recently approved a fifteen year Long
Term Integrated Perspective Plan (LTIPP) 2012-2027. The plan defines the acquisition road map for the
three forces for the next 15 years. Only the Indian Navy had a perspective plan while the IAF and the
army had never had such a practice. Based on the new LTIPP, a technology perspective capability road
map would be made and shared with DRDO, defense public sector undertakings and the industry to
enable advanced planning.
- Since the early 1970s, the Indian defense procurement process has included corruption, delays, and
bureaucratic hurdles, due to the monopoly of the civilian bureaucracy and politicians over the purchase
decisions of the armed forces. Although the armed forces are in charge of conducting trials on shortlisted
equipment and forwarding their recommendations to the Ministry of Defense (MoD), any financial
negotiations are conducted by civilian officials. This gives rise to the opportunity for corruption, by way of
bribes and collecting money for election funds. Although India is one of the only countries to ban middle-
men and brokers from operating, they are unofficially involved in almost every deal negotiated with
international companies for the importation of defense equipment. Moreover, in many cases, equipment
trials and negotiations drag on for decades. For instance, the IAF’s acquisition of advanced jet trainers
(AJTs) has been delayed by nearly a quarter of a century. Although the requirement for Hawk trainers
was raised by the air force in the early 1980s, the deal could only be signed with BAE in March 2004, with
the delivery of the first aircraft in 2009. In early 2013, the Italian firm AgustaWestland emerged at the
center of a controversy over allegations of paying kickbacks in the INR 3600 crore (US$ 663 million) VVIP
chopper deal. Italian authorities have already made arrests during an investigation into bribes allegedly
paid in 2010 by AW’s parent company Finmeccanica for the deal involving the supply of a dozen
helicopters for the intended use of Indian VVIPS including the Prime Minister and the President.
- In order to cater to the Indian defense industry, it is essential that companies develop advanced low-cost
technology solutions. This is especially true in the middle tier, where the degree of sophistication is not as
3. high as it could be. Due to low labor and infrastructure costs, the defense products developed in India are
generally very competitively priced compared to imports. An example of this is HAL’s advanced light
helicopter, the Dhruv, which only costs US$5 million, one-third of the price of similar helicopters available
from mature markets. In 2009, HAL secured a notable order for seven Dhruv helicopters from Ecuador,
despite intense competition from international vendors such as Bell and Sikorsky. However, Ecuador has
expressed dissatisfaction that these choppers are becoming a cause for concern due to poor after sales
service, expensive spares, and even over-invoicing.
Key Highlights
- India’s defense imports increased considerably during 2007-2011, making it the largest global defense
importer in 2011. The country’s imports constituted 8.5% of the total global arms transfer in 2011. The
government’s modernization plans, combined with the external threats faced by India, have led to the
country requiring a large amount of imports to fulfill its defense requirements. Since India’s domestic
defense industry is limited, large amounts of its defense requirements are expected to continue being
imported over the forecast period.
- The Indian defense expenditure is primarily driven by the need to replace the country’s aging military
hardware and to protect India from its hostile neighbors. Strong economic growth has also fueled India’s
defense industry growth. Moreover, given that the Chinese market is closed to the world, India remains
the primary place within Asia where major defense systems are sold.
- India’s defense industry is still in its early development stage, and defense exports are limited to a few
neighboring countries and less developed nations such as Mauritius, Bangladesh, Nepal, and Indonesia.
During the review period, ships, aircraft, and sensors were the three-most exported defense goods. Most
of the current defense exports in India are offered by public sector companies. Principal exporters include
Bharat Electronics, Bharat Earth Movers, Ordnance Factories Board, and Hindustan Aeronautics Limited
(HAL). The country’s main exports include military hardware such as rifles, rockets, radars, and
domestically developed helicopters and planes such as the light transport aircraft, Dornier 228, the
advanced light helicopter, Dhruv, and the light attack helicopter, Lancer.
- The DAAM has been issued by the Ministry of Home Affairs (MHA) in order to regulate the production of
arms and ammunition in the private sector. The following highlights the key points under DAAM:·The
private sector is permitted to manufacture arms on a limited basis only and on the issue of an industrial
license by the Department of Industrial Policy and Promotion (DIPP) DIPP licenses are only issued to
private companies agreeing to invest US$11 million (INR500 million), subject to maximum 26% FDI, and
equipped with advanced manufacturing capabilities.The draft policy also prohibits the participation of
small business units in arms and ammunition manufacturing. The supply of arms and ammunition is
restricted to the Central Paramilitary Forces, and Defense and State Governments on a tendering or
export basis. Sports weapons and non-prohibited bore (NHB) weapons can, however, be sold to license
holders through registered arms dealers. The manufacturing quota of existing firms will not be
enhancedDIPP has the authority to make changes in the draft policy as and when required
Buy a Report Copy @ http://www.rnrmarketresearch.com/contacts/purchase?rname=83468
Table of Content
1 Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
4. 3.1. Defense Market Size Historical and Forecast
3.1.1. India's total defense expenditure to grow at a CAGR of XX% over the forecast period
3.1.2. Hostile neighbors and modernization initiatives will be the industry's primary growth drivers
3.1.3. Defense budget as a percentage of GDP will remain at an average of XX% over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Capital expenditure allocation expected to remain at an average of XX% during the forecast period
3.2.2. Army gets the largest share of the defense budget
3.2.3. Defense ministry will spend US$XX billion on its army over the forecast period
3.2.4. Defense ministry will spend US$XX billion on its air force over the forecast period
3.2.5. Expenditure for the navy is expected to grow at a CAGR of XX% over the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. India's Homeland security market estimated at US$XX billion for 2013
3.3.2. Cross-border terrorism and domestic insurgency to be the main factors driving homeland security
3.3.3. India falls under "worst affected" of terrorism category
3.3.4. India has terrorism index score of 5.1
3.4. Benchmarking with Key Global Markets
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. India was the largest arms importer during 2007-2011
4.1.2. Russia dominates Indian arms imports
4.1.3. Aircraft accounted for the majority of defense imports during 2007-2011
4.2. Export Market Dynamics
4.2.1. India's low profile in defense exports is set to change over the forecast period
4.2.2. Underdeveloped nations across Asia, Africa and Latin America are the main importers of Indian
defense goods
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low to high
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: medium to high
5.1.4. Intensity of rivalry: high
5.1.5. Threat of substitution: medium to high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Defense Procurement Procedure (DPP) - 2011: A significant improvement
6.1.2. Offset policy to drive defense industrial modernization
6.1.3. Main features of revised Defense Offset Guidelines (DOG) - 2012
6.1.4. Private sectors permitted to produce arms and ammunition under the new Draft Arms and
Ammunitions Manufacturing Policy (DAAM)
6.1.5. Payment to foreign technology partners does not require governmental approval
6.1.6. Foreign direct investment limited to XX% in the Indian defense sector
6.2. Market Entry Route
6.2.1. Foreign OEMs are forming joint ventures in order to enter the market
6.2.2. India emerges as a key outsourcing hub for global defense companies
7 Competitive landscape and Strategic Insights
7.1. Competitive landscape Overview
7.1.1. Domestic public companies have a strong presence in the Indian defense industry
7.2. Key Foreign Companies
7.2.1. Lockheed Martin Corporation - overview
7.2.2. Lockheed Martin Corporation - main products
7.2.3. Lockheed Martin Corporation - recent announcements and strategic initiatives
7.2.4. Lockheed Martin Corporation - alliances
5. 7.2.5. Lockheed Martin Corporation - recent contract wins
7.2.6. BAE Systems Plc. - overview
7.2.7. BAE Systems Plc. - main products and services
7.2.8. BAE Systems Plc. - recent announcements and strategic initiatives
7.2.9. BAE Systems Plc. - alliances
7.2.10. BAE Systems Plc. - recent contract wins
7.2.11. Thales - overview
7.2.12. Thales - main products and services
7.2.13. Thales - recent announcements and strategic initiatives
7.2.14. Thales - alliances
7.2.15. Thales - recent contract wins
8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Population - Total rural population
8.1.2. Population - Total urban population
8.1.3. Population - Number of Households
8.2. Economic Performance
8.2.1. GDP Per Capita, USD
8.2.2. GDP (current USD Billion)
8.2.3. Exports of goods and services (current USD Billion)
8.2.4. Imports of goods and services (current USD Billion)
8.2.5. Gross National Disposable Income (USD Billion)
8.2.6. Manufacturing Output (USD Billion)
8.2.7. Consumer Price Index
8.2.8. Wholesale Price Index
8.2.9. LCU per USD (period average)
8.2.10. LCU per EUR (period average)
8.2.11. Lending Rate (%)
8.2.12. Real Interest Rate (%)
8.2.13. Market Capitalization of Listed Companies (USD Billion)
8.2.14. Market Capitalization of Listed Companies (% of GDP)
8.2.15. Total Government Cash Surplus/Deficit (LCU Billion)
8.2.16. Total Government cash surplus/deficit as % of GDP (LCU)
8.2.17. Central Government Debt (LCU Billion)
8.2.18. Central Government Debt as a percentage of GDP (LCU)
8.2.19. Goods exports as a percentage of GDP
8.2.20. Goods imports as a percentage of GDP
8.2.21. Goods balance as a percentage of GDP
8.2.22. Services imports as a percentage of GDP
8.2.23. Services Exports as a percentage of GDP
9 Appendix
9.1. About SDI
9.2. Disclaimer
For more details contact Mr. Priyank Tiwari: sales@rnrmarketresearch.com / +18883915441
Website: http://www.rnrmarketresearch.com/