Recent policy changes and business incentives instituted by the new Indian Government, are attracting foreign investment and joint ventures, by opening up the Indian market and making business transactions easier and more worthwhile.
The Indian defence & aerospace industry has seen unprecedented growth in recent years and offers enormous potential and a multitude of opportunities, both in the military and civil aviation sectors – for collaboration and joint ventures; for establishing Maintenance Repair Overhaul (MRO) facilities, production of avionics, components, accessories and more.
It is estimated that the Indian defence and aerospace industry will offer business opportunities in the range of $200 billion in the next 15 years.
Major global defence and aviation industries are already actively involved in the Indian market and continue outsource scouting of aerospace and defense products and India is fast emerging as a center for aerospace engineering and design services.
The recently formed Indian State of Telangana, with Hyderabad as its capital is one of the important business, trade and educational centers in the country. Telangana has an immensely fast-growing economy and hosts top multinational establishments alongside many small-medium innovative companies and joint ventures located in its industrial parks, Special Economic Zones (SEZ), economic areas and designated hubs.
- Hyderabad is the second biggest Aerospace and Defence Industry Hub.
- State Government aims to:
- promote the Aerospace and Defence sector in the city
- devise a business-friendly industrial policy aimed at promoting industrial growth.
- provide tax breaks for entrepreneurs
- Approx. 300,000 acres of land fit for industrial activity across the State
- Home to National Defence Organizations involved in both manufacturing and research development such as DRDO, DRDL, BDL, BEML and RCI.
- Planned 1,000 acre extension of the existing aerospace Special Economic Zone (SEZ) at Adiblatla, which houses Tata’s four units in joint ventures with global industry leaders such as Sikorsky, Lockheed Martin and RUAG Aviation.
- Telangana Government to develop two additional aerospace parks as part of its initiative to garner 15 to 20 percent market share in the aerospace and defence sector in next five years.
- Planned fourth facility focused on the aero-replacement segment with access to an existing airstrip.
- Indian Air Force’s (IAF) move to replace its Avro fleet presents a huge opportunity for Hyderabad to emerge as a defence and aerospace hub.