IN­DIA TO RE­MAIN FAVOURITE AERO­SPACE, DE­FENCE DES­TI­NA­TION

SP's LandForces - - NEWS IN BRIEF -

In­dia is poised to be­come a favourite des­ti­na­tion for global aero­space and de­fence sec­tor play­ers with to­tal off­set op­por­tu­nity for the com­mer­cial seg­ment in the coun­try set to cross $10 bil­lion mark in 2013. With the govern­ment rais­ing the for­eign in­vest­ment limit from 26 per cent to 49 per cent in the de­fence sec­tor in 2013, the coun­try is likely to wit­ness the next rush of in­vest­ments, as per a re­cent study by Deloitte, a global con­sul­tancy firm. Ac­cord­ing to Deloitte Aero­space and De­fence Out­look 2013, while the global de­fence in­dus­try is ex­pected to shrink, the growth in In­dian de­fence sec­tor is on the surge. The re­port en­tailed that mile­stones in cer­tain deals are ex­pected to be achieved in 2013, such as for sub­marines, mis­siles, and the In­dian Air Force (IAF) medium multi-role com­bat air­craft (MMRCA), apart from new joint ven­tures that are likely to be signed be­tween In­dian pri­vate and over­seas com­pa­nies. The govern­ment is de­ter­mined to fo­cus on in­di­geni­sa­tion with in­creas­ing pres­ence of In­dian com­pa­nies and also giv­ing cost ad­van­tages re­lat­ing to ba­sic de­sign and en­gi­neer­ing ser­vices, com­po­nents, and as­sem­blies man­u­fac­tur­ing. The to­tal off­set con­tracts of value more than $4.5 bil­lion to $5 bil­lion have been signed by In­dian com­pa­nies with for­eign com­pa­nies since the off­set pol­icy came into ef­fect in 2005.

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