India may spend USD 80 bn in 5 yrs on defence acquisitions:CII

New Delhi, Jun 17 (PTI) India is estimated to spend about
USD 80 billion in the next five years on defence acquisitions,
making it one of the most attractive markets for global
defence firms, an industry study has said.
The Confederation of Indian Industry (CII)-Deloitte
report on 'Prospects for Global Defence Industry in Indian
Defence Market' said the defence capital expenditure budget
was expected to achieve a Compound Annual Growth Rate (CAGR)
of 10 per cent from 2011 to 2015.
Total indigenous production between 2011 and 2015 would
need to expand from about USD 30 billion to more than USD 70
billion in the span of five years to be able to achieve 70
per cent indigenisation by 2015, the report, released during
the Eurosatory-2010 defence exhibition in Paris, said.
It noted that the defence industry would need to expand
by an average of 30 per cent a year over the next 5 years.
The report, released by Defence Production Secretary R K
Singh, provides information to global investor firms to
understand the Indian defence requirements and domestic
industry capabilities and opportunities in four key domains --
maritime, land, aerospace and electronics.
Singh, in his address, said the 'Buy and Make (Indian)'
category in the Defence Procurement Policy of 2009 was an
opportunity for foreign players to partner with the Indian
Defence industry.
He further said the new category would enhance the
formation of joint ventures and technology partnership between
the Indian and foreign defence industry.
Responding to a query, Singh clarified that the Defence
Ministry was in favour of continuing with the Foreign
Direct Investment (FDI) limit of 26 per cent.
"Over the past decade, the Indian Ministry of Defence has
put into motion plans for an unprecedented modernisation
program of its defence capabilities.
"In this context, India has embarked on a major defence
acquisition program, aimed at increasing the size, capability
and self-reliance of its armed forces," it said.
The report said the aerospace and defence sector was
growing at an unprecedented rate and emerging as a key
participant in the Asia Pacific region. It also provided an
indicative list of the Indian defence acquisition plans.
In the 2010-11 budget, the Indian government had
earmarked USD 32.03 billion (Rs 1,47,344 crore) for defence.
"More than USD 42 billion in total defence expenditure is
targeted by 2015, of which approximately USD 19.20 billion
would be expected to be spent on capital equipment for the
armed forces," the report said. (MORE) PTI NCB
RDM


The information contained in this electronic message and any attachments to this
message are intended for the exclusive
use of the addressee(s) and may contain proprietary, confidential or privileged
information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please
notify the sender immediately and destroy
all copies of this message and any attachments contained in it.


Delete & Prev | Delete & Next