India’s growth opportunity in defence

India’s growth opportunity in defence

Defence could be the next boom after the IT (information technology) and automotive sectors, hopes Wg Cdr Neelu Khatri (Retd), Manager, Defence Advisory Services, KPMG, New Delhi. “The total defence spending from 2010-2016 would be to the tune of $280 billion. Based on last five years’ average revenue, capital expenditure on major acquisition would translate into about $115 billion,” she mentions, during a recent telephonic interaction with Business Line.

India’s capital acquisition includes aircrafts and aero engines, radars, artillery guns, heavy and medium vehicles, and naval vessels, interceptor boats, among others; this opportunity is to be seen as one that could benefit all stakeholders, Neelu feels.

“A good beginning has been made. The Government of India must be appreciated for formulating the Defence Procurement Procedure, a dynamic document that has shown incredible improvement since inception. With more impetus from the Government, India could well be the next defence and aerospace manufacturing hub.”