As per the report, the total market opportunity for A&D electronics for India to ranges from USD 70-72 billion in next 10-12 years. “India needs to modernise its A&D capital equipment base by addressing obsolescence as well as build additional capability through new capital acquisition. This requirement is also supplemented by additional budgetary allocations of the Ministry of Home Affairs for paramilitaries and state police force requirements,” the report said. All of this results in India being substantially attractive as an A&D market, it added.
Of total market opportunity, almost $53-54 billion emanates from electronics spend as part of platforms, while another $17-18 billion of demand comes from projects that are traditionally called system-of-system projects like Indian Army’s Project TCS, BMS etc, it added. “The size of strategic electronics is projected to grow to $72 billion from the present $1.7 billion market,” said V K Saraswat, NITI Aayog member. “Though India is considered as a ‘soft power’ in the space, we are yet to witness a single Indian company that develops strong end-to-end Aerospace and Defence software solutions,” he added.
“It is important for us to create an arrangement for technology transfer with more advanced nations and the role of the government will be significant here. They should create an environment for the domestic players to cross-pollinate knowledge and technologies with other countries,” said R Chandrashekhar, President, Nasscom.
The report said there are certain issues that need to be addressed, which includes lack of visibility and delays in award of contracts, streamlining transfer of technology and push manufacturing in India.