Minister of State for Defence Shri MM Pallam Raju released a CII-KPMG report titled ‘Unlocking the potential of the Indian Aerospace and Defence Industry’ at Aero India-2011, today. The report is an assessment of the global opportunity trigger points and critical success factors for making India a participant in the global aerospace and defence sphere.
The KPMG report indicates that in past 48 months, Indian Ministry of Defence (MoD) has signed deals worth approximately USD 24.66 billion with global integrators. It also goes on to suggest that deals worth another $ 41.99 billion are in the process of getting signed.
Defence Minister in his inaugural speech at Aero India-2011 had stated that the defence expenditure, currently at 2.5% of GDP, will increase over the next two decades. The report vindicates India as one of the biggest markets for aerospace and defence.
The report suggests critical success factors based on analysis of the best global practices in the aerospace and defence industry. India’s aerospace sector has emerged as the fastest-growing one in the world. The report goes on to suggest that the nascent industry has now a foothold to catapult into becoming a leading aerospace and defence hub.
The report says that indigenization of the industry and acquiring of advanced technologies will facilitate lowering of dependence on imports. Issues of supply chain integration, technological inferiority and funding are some of the needs to be addressed.
Richard Rekhy, KPMG Head in India, says the Defence Procurement Policy (DPP) 2011 is a widely accepted, well planned document, reflecting the government’s commitment to forging international partnerships through expansion of offset policy.
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