India’s A&D Electronics Market To Reach $72 Bn By 2029

by CXOtoday News Desk    Aug 05, 2016

Defence 

India’s aerospace and defense electronics market is expected to be worth $70-72 billion over the next 10 to 12 years as the country rapidly modernizes its military by embracing new technologies. Nearly USD58 billion of the electronics opportunity comes from platform — large systems that have electronic components built as a solution, according to the Defence Electronics and Systems Design Report released by Roland Berger in partnership with industry bodies Nasscom and India Electronics and Semiconductor Association (IESA).

“India’s electronics market has been witnessing huge growth in Consumer Electronics, Industrial, Communication and Strategic Electronics. Today, the size of Strategic Electronics is projected to grow to $72 Bn from the present $1.7 billion market, and this indicates immense potential as there exists a significant gap between supply and demand, said Dr. V. K. Saraswat, Member NITI Aayog.

India Electronics and Semiconductor Association (IESA), NASSCOM, along with Roland Berger, a leading global strategy consulting firm launched the Defence Electronics and System Design Policy Recommendations at DEFTRONICS 2016, the annual flagship A&D event organized in Bengaluru on Aug 4 & 5, 2016. The recommendations are based on current aerospace, defense and internal security trends and happenings to provide guidance towards the formulation of Defense policies by the Union ministry.

The chief guest for the event was Dr. V. K. Saraswat, Member NITI Aayog and Former Chief Scientific Advisor to the Indian Minister of Defence & Director General, DRDO. He spoke on the event theme, throwing light on the importance of the need to build India’s Strategic Electronics ecosystem for greater self-reliance and emphasized on its global relevance to areas in fields of Defence, Aerospace and Internal Security.

“We expect the government to support startups in the Defense Electronics industry in India. The Defense manufacturing shifts globally has seen the Wave 1 from US to Japan; Wave 2 from Japan to Europe, Wave 3 from South East Asia to China; I want Wave 4 to be from China to India,” Saraswat added.

The guest of honor, H.E. Yael Hashavit, Consul General of Israel, Consulate General of the State Israel also provided her insights into the Indian defense, aerospace and the innovation in the ESDM sector with respect to her expertise relating to the Israel Defence Force.

Incidentally, IESA and NASSCOM have been given the responsibility to draft recommendations for the policy paper for Defense Electronics and System Design by the Ministry of Defense. Roland Berger has played an advisory and consultant role in the formation of the draft policy paper. The Defense Electronics and System Design Policy.

In order to promote exports of Defense Electronics, the policy recommendations have stated the need for an introduction of a multiplier that will ensure export base of defense electronics around valid technologies. Moreover, the draft has suggested that DPSUs need to leave control of the supply chain and the government needs to ensure more opportunities in the private industry. Another key issue that the government and the industry need to address together is the shortage of key infrastructure and talent.

Speaking about the policy, R. Chandrashekhar, President, NASSCOM added, “We are required to keep pace with the innovation happening across the globe and need to start providing a stimulus to the companies in the defense electronics domain. Hence, it is really 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.”

The defense and aerospace sector has seen considerable growth in recent years. But the shift from buyer to manufacturer will be challenging. Speaking about India’s multi-billion defense market, Manfred Hader, Senior Partner and Global Head for Aerospace and Defence, Roland Berger said, “The government’s effort to boost the A&D sector can be measured with its seriousness in handling the prevailing issues. The government’s determination in streamlining the sector by forming a policy focused on A&D electronics segment is really commendable. Though the industry is struggling with multiple issues, we believe that with the right policy impetus, India’s A&D electronics can be the driver for the sector’s success story in India. We congratulate IESA and NASSCOM in taking the leap in the form of DEFTRONICS 2016.”

DEFTRONICS 2016 promises to draft a new vision for the defense space through a constructive discussion over two days, led by government officials and industry thought leaders. The first day of the event was graced by dignitaries such as Yael Hashavit, Consul General of Israel, Dr. V. K. Saraswat, and Former Chief Scientific Advisor to the Indian Minister of Defense & Director General, DRDO, international experts in Cyber Security and also Defense service personnel who are responsible for policy initiatives.

((Image Courtesy: www.thehindubusinessline.com)