India has the third largest armed forces and one of the world’s top eight defence spenders with its military budget at USD 50.07 billion . With 60 % of its defence needs met through imports, India is the largest importer of conventional defence equipment in the world. National security and Geo-Political requirements present an ever growing need to build additional capability through new capital acquisition. In addition, the civilian aerospace sector is in itself a large evolving industry that already services many of its requirements from India. All of this presents enormous opportunities for companies looking to grow in these sectors. With a supply of skilled engineers, scientists and IT professionals, expectations are high that Indian companies and the country will play a vital role across the A&D value chain including research, design, development, manufacturing, maintenance, quality control and training. Some estimates state that defence offsets with approximately $4.53 Billion worth of contractual offset obligations are to be met in next five to six years. The next decade will undoubtedly see India as an important part of this sector globally.
Government of India (GOI) has made the development and growth of the indigenous A&D sector as a high priority. Under the over-arching framework of the "Make in India" program, Government of India announced the Defence Procurement Procedure [DPP) 2016 which provides a massive thrust to sector.
Gujarat is one of the leading industrialized states in the country. It accounts for 5% of the country's population but contributes over 19% of its industrial output.. In fact Gujarat is emerging as a favourable defence manufacturing base amongst the private lndian defence companies .Under the visionary 'Make in India' program, Government of India has granted Defence manufacturing licenses to A&D companies and Gujarat has emerged as a preferred destination for a large number of these companies that are looking to commence operations in the A&D sector. Gujarat aims to not only attract the world's largest A&D companies but also proactively promote the MSME sector to tap into huge opportunities in defence manufacturing and offsets. Government of lndia's target to source 70 % of the Defence equipment from Indian companies by 2020,has given a major boost to the large base of MSME's in Gujarat.
The Government of Gujarat has announced the “Aerospace & Defence Policy, 2016” as well as “Defence Manufacturing Policy, 2016” with the intention of bringing in capital intensive defence and aerospace manufacturing to the state offering the capital subsidies, interest subsidies, various tax concessions with state Government Institutional Mechanism for boosting A & D Manufacturing. An A&D manufacturing ecosystem will be cultivated within the state by way of developing critical mass of capabilities, technologies and suppliers. This policy is a promise that investors, both Global and Domestic will find a facilitative, peaceful and enabling business environment that matches with the best in the world.
The State Govt. is endeavouring to establish Gujarat as lndia's leading hub for indigenous Aerospace & Defence manufacturing by developing globally competitive talent in the sector, promoting investments in research & development to drive globally-recognized innovation in product design and manufacturing, and supporting enabling institutions in the Aerospace & Defence manufacturing ecosystem.
- Artillery, Ammunition and Small Arms
- Composites / Defencetech Fabrics
- Electronic Systems
- Casting and Forging Products
- Maintenance, Repair and Overhaul (MRO)
- Research & Development
- Ancillary Cluster Development
- Testing Ranges
How can we help
We at PPIPL recognise the significant opportunity that the defence sector provides to our clients. We have a dedicated team to help our clients and to provide solutions for setting up the project. We assist organisations in optimising their entry and growth strategies by providing end-to-end services. We facilitate successful joint ventures (JV) and provide offset structuring, tax and regulatory services, transaction and implementation support. Our knowledge and expertise is demonstrated through our in-depth focus and understanding of the market and opportunities in the Indian Aerospace and Defence industry. Our independent relationships with regulatory bodies and collaborations with diversified clients help us serve you better.