India has the second largest armed forces and one of the world’s top eight defence spenders with its military budget at $ 60.9 billion. With 70 % of its defence needs met through imports, India is the second largest importer of conventional defence equipment in the world. Some estimates state that defence offsets with approximately $5.67 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 State 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.
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.
The State Govt. is endeavouring to establish Gujarat as lndia’s leading hub for indigenous Aerospace & Defence manufacturing. India’s first smart city Dholera SIR is the focus destination for Defence Hub.
We at PPIPL have shortlisted the most feasible areas in this sector:
- Artillery, Ammunition and Small Arms
- Composites / Defence tech Fabrics
- Electronic Systems
- Casting and Forging Products
- Maintenance, Repair and Overhaul (MRO)
- Ancillary Cluster Development
- Arms, Allied Items.
- Tanks And Other Armoured Fighting Vehicles.
- All Rifles And Smooth Bore Vessels.
- Ground Vehicles.
- Vessels Of War(Surface & Underwater)
- Ammunition And Fuse Setting Devices.
- Bombs, Torpedos, Grenades, Smoke Canisters, Rockets Etc.
- Air Independent Propulsion
- Aircraft Including Helicopters, Unmanned Aerial Vehicles & Remotely Piloted Vehicles.
- Cryogenic And Superconductive Equipment.
- Directed Energy Weapon.
- Imaging And Countermeasure Equipment.
- Specialised Equipment For Military Training.
- High Velocity Kinetic Energy Weapon.
- Electronic Equipment For Ecm, Eccm And Gnss Jamming Equipment.
How can we help
We facilitate successful joint ventures (JV) and provide offset structuring, tax and regulatory services, transaction and implementation support. Our independent relationships with regulatory bodies and collaborations with diversified clients help us serve you better.