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India Defense Market - Growth, Trends, and Forecast (2019 - 2024)

  • ID: 4828182
  • Report
  • Region: India
  • 108 pages
  • Mordor Intelligence
until Dec 31st 2019
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  • Airbus SE
  • Hinduja Group
  • Kalyani Group
  • Rostec
  • The Boeing Company
  • MORE
Market Overview

The Indian Defense Market is expected to grow with a CAGR of more than 4% during the forecast period.
  • The geopolitical conflicts of India with neighboring nations like Pakistan, China, etc, and the threat due to terrorism forced the country to further reinforce its perimeter security and the naval and airborne capabilities.
  • The country is constantly increasing its defense expenditure and the budget for 2019, valued at USD 44.6 billion, is its largest ever. The increase in the defense budget is expected to drive the market in the years to come.
  • India is striving for self-sufficiency by promoting ‘Make in India’ initiative in its defense through focused, sustained and evolved indigenization programs. This may provide new opportunities for players for growth in the Indian market.
Scope of the Report

The study covers all aspects and provides insights about the budget allocation and spending in the India defense market. The report also includes details about the ongoing projects and military procurement plans by the Indian military.

Key Market Trends

Army to be the Biggest Revenue Segment in the Years to come.

As of 2018, the Army Segment has the highest market share out of all the segments. Modernization and capability development of the Indian Army is taking place at a rapid pace. In 2017, till November, thirteen contracts worth USD 4.3 billion have been signed for capital procurement of defense equipment for Army such as Helicopter, Missiles, Simulators, Artillery Guns, Electronic Fuzes, and Ammunition. Recently, in February 2019, India signed a contract with a US firm for 72,400 assault rifles at a cost of around USD 100 million. The planned procurement/upgrades of a number of Air Defence Guns and equipment are also expected to further enhance the capability of ground-based Air Defence. India is also in talks with the United States to procure National Advanced Surface-to-Air Missile System-II (NASAMS-II), an advanced air defense system at USD 1 billion. Also, in October 2018, India’s Ministry of Defense (MoD) has approved the procurement of 1,000 new engines for the Indian Army’s T-72M1 Ajeya main battle tanks (MBT). All these developments, along with the other plans to modernize the country's armed forces, may also help the growth of the segment in the years to come.

Make In India Initiative Promoting Indigenous Manufacturing Capabilities in India.

Many initiatives are being taken by the Indian Department of Defence to promote ‘Make in India’ in the defence manufacturing sector. The Department of Defence Production (DDP) has established wide-ranging production facilities for the production of various defense equipment through Defence Public Sector Undertakings (DPSUs) and the Ordnance Factories. The products manufactured include heavy vehicles, arms and ammunition, tanks, armored vehicles, helicopters, fighter aircraft, warships, submarines, missiles, electronic equipment, earth moving equipment, special alloys, and special purpose steels. IAF is working towards obtaining self-sufficiency by promoting ‘Make in India’ through focused, sustained and evolved Indigenisation Programs. IAF currently focuses on reducing the dependency on import of defense equipment. IAF has inducted Light Combat Aircraft, Akash Missile, Advance Light Helicopters (ALH) in the recent past. IAF also plans to induct more capable and potent LCA Mk-IA in the future. It is also actively supporting DoD of LCH, RPAs, Medium Power Radars, Low-Level Tracking Radars, and other systems and closely coordinating with DRDO for the development of various types of state-of-the-art weapons. Manufacturing of Ka-226 T helicopters, Close in Weapon System and Single Engine Fighter aircraft under the ‘Strategic Partner’ model is also in line with the ‘Make in India’ initiative. The Shipyard has also made considerable progress in the implementation of ‘Make in India’ Program. Indigenisation of Steel Plates, Gearboxes, Steering Gear system, Fin Stabilizer System, Heli Grid, Doors (Water & Weather tight) and Gemini Boats have increased the indigenous content to 70% in ongoing five CG OPV Project compared to 62% indigenous content in recently completed Coast Guard Offshore Patrol Vessel (CG OPV) project.

Competitive Landscape

Hindustan Aeronautics Limited (HAL), Ordnance Factory Board (OFB), Rafael Advanced Defense Systems Ltd., Rostec, Lockheed Martin Corporation are some of the major players in the Indian Defense market currently. The Make in India initiative, launched by the Indian Government, has propelled several partnerships between foreign and local manufacturers. Partnerships between companies like Hinduja Group flagship Ashok Leyland and Elbit Systems for military vehicles, the Tata Motors tie-up with Bharat Forge and General Dynamics, the partnership between India and Russia for Frigates and AK-203 Assault Rifles, Boeing's Partnership with HAL and Mahindra for the production of F/A-18 Super Hornet fighters are some of the major partnerships in the recent past, which were a result of the Make in India initiative. India is also trying to develop its indigenous manufacturing capabilities and is now focusing on increasing the product range of the defense equipment that it can produce locally, thereby reducing its dependency on the import of defense equipment.
Note: Product cover images may vary from those shown
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  • Airbus SE
  • Hinduja Group
  • Kalyani Group
  • Rostec
  • The Boeing Company
  • MORE
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study



4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 PESTLE Analysis

5.1 Armed Forces
5.1.1 Air Force Training and Simulation Communication Systems Weapons and Ammunition Manned and Unmanned Aerial Vehicles
5.1.2 Army Personal Training and Protection Communication Systems Weapons and Ammunition Manned and Unmanned Ground Vehicles
5.1.3 Navy Weapons and Ammunition Sea-based Manned and Unmanned Vehicles Communication Systems

6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Vendor Market Share
6.3 Company Profiles
6.3.1 Hindustan Aeronautics Limited (HAL)
6.3.2 Defence Research and Development Organisation (DRDO)
6.3.3 Ordnance Factory Board (OFB)
6.3.4 Bharat Electronics Limited (BEL)
6.3.5 Goa Shipyard Limited (GSL)
6.3.6 Hinduja Group
6.3.7 Kalyani Group
6.3.8 Rafael Advanced Defense Systems Ltd.
6.3.9 Israel Aerospace Industries
6.3.10 Rostec
6.3.11 United Aircraft Corporation
6.3.12 The Boeing Company
6.3.13 Lockheed Martin Corporation
6.3.14 Airbus SE

Note: Product cover images may vary from those shown
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  • Hindustan Aeronautics Limited (HAL)
  • Defence Research and Development Organisation (DRDO)
  • Ordnance Factory Board (OFB)
  • Bharat Electronics Limited (BEL)
  • Goa Shipyard Limited (GSL)
  • Hinduja Group
  • Kalyani Group
  • Rafael Advanced Defense Systems Ltd.
  • Israel Aerospace Industries
  • Rostec
  • United Aircraft Corporation
  • The Boeing Company
  • Lockheed Martin Corporation
  • Airbus SE
Note: Product cover images may vary from those shown
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