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INDUSTRY IN INDIA
- S. ISHWARYA
(723814251011)
Definition :
Defense Industry is responsible for manufacture and sale of military weapons and systems designed to
operate on land, sea, and in the air, also involves research and development, engineering, production, and
servicing of military material, equipment, and facilities.
The Aerospace & Defence Industry in India is a strategically important sector in the country.
India has the world’s largest volunteer army and 3rd largest armed forces in the world, with
the strength of over 1.3 million active personnel.
In recent years the Defence sector has grown extensively with a CAGR(Compound Annual
Growth Rate) of 10%.
Between 2012 and 2016, the country accounted for 14% of all global arms exports making India
the world’s largest arms importer. This is likely to change with the Government’s target to step
up local sourcing to 70% and in turn reduce the defence budget by 50% in the next 10 years.
India’s Defence procurement : 60% from foreign sources ; 40% from indigenous sources.
Of the total defence budget allocation for 2016-17, about 31.5% of it was allocated to capital
acquisitions.
Government of India is seeking to expand procurement through indigenous sources, from the
current 40% to the target 70% over the next decade.
Aviation and Defence Manufacturing sectors are one among 25 sectors of "MAKE IN INDIA"
project.
ISSUES :
India is emerging as one of the strong players among the emerging aerospace industry, among
countries such as Israel, Brazil, China ,Mexico.
The major strength of India lies in the manpower, about 60 % of Indians are below 40 years of
age and is considered to be young nation.
The country has large pool of engineers, diploma and ITI holders.
India is the ninth largest civil aviation market in the world and is projected to become the third
largest by 2020.
In addition, several educational, scientific and technical educational institutions are fostering
domain expertise in IT, engineering and design skills that can be leveraged by aerospace majors.
ISSUES :
There are serious gaps in the talent spectrum in the A&D sector.
There are not enough seats available in some of the critical trades.
At the same time, seat utilisation is less than 100 per cent in some of the important trades. There
are regional variations in the demand-supply gap with concerns for the Western region for
industrial manpower.
There are negligible opportunities at the higher end (PG and above).
There are almost no specialised courses at Graduate and Diploma level in Defence Engineering
and Technology.
The quality of the courses offered is not up to the expectations of the industry.
There are placement issues concerning to the only technical institutions that offer specialised
courses in defence technology, raising questions about the credibility of such courses.
Availability of resources.
Thus for ‘Make-in-India’ dream to be successful, it must address the skill challenge by joint
public-private efforts with the Government taking the lead through Skilling India efforts for
defence sector.
Establishments of Defence bases in the city( Air force & Military academy).
High scope for extending Training Institutitutes, with the existing high quality of education.
References :
1.https://en.wikipedia.org/wiki/Aerospace_manufacturer
2.https://en.wikipedia.org/wiki/Arms_industry
3.Make in India; World Military Balance 2016 Report –International Institute for Strategic
Studies
4.Ministry of Defence, Govt. of India; DIPP; Institute for Defence Studies and Analyses (IDSA)
5.Ministry of Defence, Govt. of India; KPMG Analysis, Make in India
6.IFSEC Global; The Future of the Indian Defense Industry