Indian Defence Market $36.42bn

Thursday 21 April 2011, Amsterdam

Enabled by substantial economic growth over the past decade, and driven forward by a national policy of military renewal and development, the Indian defence market has been propelled to the forefront of the world stage in relation to global military markets. The rise of Indian defence spending and capabilities reflects India's position not only within the confines of Asia, but throughout the entire world, as the shifting dynamics of geopolitical power tilt its way. We have determined that the value of the Indian defence market in 2011 amounted to $36.42bn and forecasts the Indian defence market in detail from 2011-2021. The forecasts and analysis are underpinned by extensive expert consultation with Larsen & Toubro and Lockheed Martin Indian Private Ltd.

Stemming from the lessons learnt through the experiences of the Kargil conflict and the Mumbai attacks, coupled with more traditional border and geopolitical regional threats emanating from both Pakistan and China, India has established a firm policy of military procurement which looks set to continue for at least the next decade.

India's strategy to improve its defensive capabilities is divided between a commitment to encourage indigenous development, along with a desire to attract the most advanced foreign made defence systems in the world to Indian soil. This strategy, along with India's progression towards a more privately influenced defence market means that from aircraft and submarines, to communications and unmanned vehicles, the Indian defence market offers significant opportunities for future business.

India's quest to modernise and advance its military touches all divisions and areas of Indian defence, including the Army, Navy and Air Force, as well as areas such as research and development, training, and construction. As a consequence, the market remains active for companies with concentrations across all sectors of Indian defence.