Indian defence industry

The Indian defense industry is one of the fastest-growing global defense markets. India's defense capital expenditure, which refers to the part of the defense budget that is spent on the acquisition of all types of military hardware and technology, has grown at a CAGR of XX% over the review period. In 2010, India was allocated US$XX billion for defense capital expenditure in the budget. Defense expenditure is expected to record a CAGR of XX% during the forecast period, to reach an annual expenditure of US$XX billion by 2016. This is primarily due to the country's ageing military hardware and technology which is in need of replacing, and demands for defense against domestic insurgencies and hostility from neighboring countries. The strong growth in the industry is attracting foreign original equipment manufacturers (OEMs) and leading companies from the domestic private sector to enter the market.
Moreover, terrorism is leading to sharp increases in the defense budget and a shorter sales cycle, which offers an attractive market for defense manufacturers.The country is especially expected to demand unmanned combat aerial vehicles (UCAVs), advanced electronic warfare systems, combat systems, rocket and missile systems, fighter and trainer aircraft, stealth frigates, and submarines during the forecast period. In addition, its expenditure on IT and communications is expected to increase significantly, with a strong focus on enterprise applications, systems integration, and real-time mobile communications.The country relies upon imports to procure defense equipment with advanced technology, and, since most of the equipment India is seeking use advanced technology, there will be a significant prospect for foreign OEMs to enter the Indian defense market.
Government spending on India's homeland security market has increased significantly as a result of terrorist attacks, the smuggling of arms and explosives, and domestic insurgency. In 2010, the country's homeland security budget registered an increase of XX% over the previous year, with the Central Reserve Police Force (CRPF) receiving the largest share of the budget. Due to the nature of the security threats which the country faces, the main opportunities for growth in homeland security are expected in the aviation, mass transportation and maritime security markets. Following the increase in both domestic and foreign terrorist attacks, spending is expected to increase in surveillance technology, global positioning systems, radars and biometric systems.

Source : defencetalk.com