The Aerospace & Defence Industry in India is a strategically important sector in the country. With the strength of over 1.3 million active personnel, it is the world’s 3rd largest military force and has the world’s largest volunteer army. In recent years the Defence sector has grown extensively with a CAGR of 10%. India’s defence industry accounts for about 1.6% of the GDP. The allocation of Defence in India’s union budget is approximately USD 34.53 billion and 31.1% of the defense budget is spent on capital acquisitions. Imports account to 60% of defense-related requirements and this offers a huge opportunity for foreign investors. In the next years, the Government target’s to step up local sourcing to 70% and in turn reduce the defence budget by 50%. The government is currently pursuing the goal of having a turnover of 25.5 billion USD in military goods and services by 2025.
The Aerospace sector in India has had a steady growth in both Defence and Civil Aviation sectors. Aerospace is predominant to bolster the Defence sector and contributes nearly 50% of the Value of Production of the sector. With over 300 million in the middle-class income group who can travel at least once a year by air and India’s growing economy that will boost the traffic trends both in passenger and cargo, the civil aviation industry in India also offers large growth opportunities.
Organizations Under Mechanical Sector