INDIA TO REMAIN FAVOURITE AEROSPACE, DEFENCE DESTINATION
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.