'Global defence ind to expand biz in India'
The global defence industry, which was shrinking over the last few years, can expand by doing business in India, a multi-national consultancy firm has said.
According to a new financial report from Deloitte United States, defence contractors in the top global aerospace and defence companies experienced a one per cent decrease in global revenues in first half of the year, on top of the 3.3 per cent decline in revenues in 2011.
"With decreasing defence budget cycle in USA and Europe, their industry could look to expand their business in India due to its burgeoning requirement of aircraft, weapons, other security equipment," Deloitte Touche Tohmatsu India Private Limited Director Nidhi Goyal said.
"This is also attractive for those industries to take advantage of manpower and cost reduction by production and assembly in India," she said.
India, which has in recent times emerged as one of the largest importers of arms in the world, is planning to spend more than USD 100 billion in next five to ten years for procuring a range of weapon systems and technologies for its armed forces.
A number of big-ticket deals are in the pipeline including the multi-billion dollar planned acquisition of 126 Medium Multi-role Combat Aircraft (M-MRCA) for the IAF, 197 choppers, 75 multi-role naval helicopters worth around USD four billion for the Navy.
The Navy is also in the process of issuing a global tender for procuring six new generation diesel electric submarines at an estimated cost of more than Rs 50,000 crore.