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India's new defence policy "The most booming market for defence that has

opens up $100 bn market not already been captured… is India"


Reuters 2009 Stefan Zoller
Defence and Security Chief
European Aeronautic Defence and
Space Company (EADS)

ISME
NSIC-F

T R A C T
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DEF INDIA 2011
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ISO 9001 : 2008


Ministry of MSMEs
Govt. of India National body of MSMEs in India A Govt. of India Enterprise
Indian
Indian Defence
DefenceMarket
Market Indian Defence Market India's new defence policy opens
up $100 bn market
India is the 10th largest defence buyer in the world. With an estimated 2.5 per cent - Reuters 2009
share of global defence expenditure, it is also among the fastest growing markets.
A recent report puts India's current defence expenditure in range of US $32 billion
which is set to rise to an estimated $42 billion by 2015. The capital expenditure on new
weapon platforms will also rise from the current $13.04 billion to $19.2 billion in 2015.
For the XII-Five Year Plan (2012-17), India's plan expenditure on weaponry is pegged
at $120 billion.
Since 2001, the defence industry has been liberalized and opened to private sector
with participation up to 100% and allowing Foreign Direct Investment (FDI) up to 26%.
The private sector defence supplier group is composed of around 5000 companies
(large and MSMEs). It accounts for around 20% of Indian defence market in value
terms: rest of the requirement is met through imports. With new policy-set, the
government has allowed local companies to freely bid for projects involving tanks,
artillery, aircrafts etc. The government has set a target for procuring 70% its defence
requirements from indigenous sources. Experts peg the market opportunity to over
$ 100 billion.

Aerospace Sector Aerospace Sector “Indian aerospace industry is


The buoyancy is not just limited to defence. India is one of the fastest growing aviation witnessing three main trends –
markets in the world. With the liberalization of the Indian aviation sector, the industry fast growth in civil aviation,
has witnessed a transformation with the entry of the privately owned full service development in manufacturing
airlines and low cost carriers. The private carriers account for around 75% share of the (especially in the private sector),
domestic aviation market. A burgeoning middle class, driven by an economy growing and emergence of India as an
at 8.5 percent a year, has boosted demand for air travel phenomenally. The Indian aerospace technology-sourcing
aviation market is forecasted to grow by 25% an year forcing the government, airlines center”
and aircraft manufacturers to work overtime to keep up with demand. - Global Aerospace Market Forecast
Mr Praful Patel, the Union Civil Aviation Minister of India has recently stated that the (2006-2009), RNCOS report
Indian aviation sector will become one of the top five civil aviation markets in the
world over the next five years. India currently ranks ninth in the global civil aviation
market. The country has 454 airports and airstrips, of which 16 are designated as
international airports. Investment opportunities of US$ 110 billion are being
envisaged up to 2020 with US$ 80 billion towards new aircraft and US$ 30 billion
towards the development of airport infrastructure, according to the Investment
Commission of India.
Mr. Stefan Zoller, Defence and Security Chief of EADS (owner of Airbus) has recently
said, 'the most booming market for defence that has not already been captured is
India'.
Responding to their assessment of Indian demand of more than 1000 aircrafts in next
20 years, EADS is already setting up an industrial base in India.
The space industry is also keeping pace with the growth of aviation. The Indian
government's space budget of $1.26 billion for 2010 has witnessed a jump of 22%
from that of the previous year and the spending is also expected to increase further by "India next to China is one of the
an average of 15% annually over the next four years to reach $2.17 billion by 2014. In big growth hubs for the aviation
terms of space budget and technological capabilities, India is currently ranked sixth industry.. would require more
globally behind the US, Europe, Japan, Russia and China. than 1000 aircrafts in next 20 years"
Tom Enders, CEO , Airbus

Homeland security market Homeland security market


The homeland security market is also experiencing explosive growth. The security
environment has become increasingly challenging in last decade in around the world
in general and in South Asia in particular. The demand for security equipment and
services has gone up manifold with increased public and private spending. India 's
Union Home Minister, Mr. P. Chidambaram has recently reiterated India's
commitment to increase its Homeland Security budget by a massive 35% to over
$29.52 billion in 2009-10. (Airports security alone is projected at over $3.2 billion by
2016 growing at a compound annual growth rate (CAGR) of 5 per cent). Indians will be
investing another $12.3 billion into the private security industry by 2016.
DEF+CONTRACT INDIA 2011 DEF+CONTRACT INDIA 2011
DEF+CONTRACT INDIA is an MSME Sub-contracting & Supply Exhibition for Defence,
Aerospace and Homeland Security. It aims to be a platform for finding right partners,
subcontracting opportunities and forging alliances. This 3-day intensive interaction of
MSMEs for business development with the leaders of defence and aerospace industry
supply-chain together with industry partners, suppliers and technologists provides a
setting that cannot be missed.

Benefits to Exhibitors
To Foreign firms/ DPSUs/
To Indian MSMEs
Indian contractors/ Indian MSMEs

• Coming face-to-face with India's • Exhibit your strengths and


backbone : MSMEs come face to face with buyers
• Identify dependable equipment or • Foreign participation/ visit of
“India's space industry is
component supplier or partner delegations facilitated by
registering explosive growth..for • Leverage 'frugal engineering' skills fo re i g n e m b a s s i e s a n d
indigenous as well as foreign of Indian MSMEs for innovation defence PSUs
suppliers…” and competitiveness • Dissemination of information
Tom Captain, • Forge alliance with MSMEs to on emerging sub-contracting
Vice Chairman, Deloitte LLP , exploit emerging business opportunities through
Global Aerospace & Defense Sector opportunities in public or private presentations of large
Leader domain domestic/ foreign buyers
• Network with players in entire during seminars
supply chains: manufacturers, • All supporting institutions at
specialized service providers, one place
logistics, potential collaborators, • Most economical exhibiting
consultants, agents etc option- thanks to support
from Ministry of MSME

Visitors
• Representatives from Private and Public Industries engaged in business of
defence, aerospace and homeland security
• All public procurement agencies in the three areas
• Foreign delegations
• R&D Institutions, Universities and Technologists
• Delegations from Industry associations from all over India and foreign countries
Government pushing hard to
• Business Development Service providers, agents and consultants
triple increase indigenous
defence procurement from
current 20% to 70% Concurrent Events
• Seminars and Workshops exposing MSMEs to emerging business opportunities
and the buyers to the capabilities of Indian MSMEs
• MSME capability assessment mechanisms “India's space industry is registering
explosive growth..for indigenous as well as foreign suppliers…”

Indian MSMEs

• 2.8 million units accounting for 30-40% of value-addition in manufacturing


• Contribute 50% to India's Industrial output and 45% to exports
• Of the 6000 approved vendors of defence PSUs, around 90% comprise of MSMEs (over 500 of them to ISRO )
• Working on cutting edge technologies, a sizeable section of MSMEs honed up their engineering competencies by excelling in
automobile, electrical, electronics, light engineering and capital goods sectors
India's new defence policies unlocking $100 bn market
India's defence procurement policy regime is undergoing a paradigm shift and is being credited to open up business opportunities to the
tune of US$ 100 bn in next few years. The Indian manufacturers/ suppliers of goods and services for defence, aerospace and home-land
security are to be the main beneficiaries of the government support policies of "buy local", taxation arrangements that advantage local
firms (including defence public sector undertakings ) and the recently announced 'offset policies'.
India's offset policy for the defense industry states that any purchase from a foreign supplier in excess of $70 million will require a
reinvestment of 30% of the total purchase amount in terms of components and services from India including establishing training
facilities, technology sharing, sourcing components, or using IT services from India firms. The policy is extended to state-owned carriers
such as Indian (previously Indian Airlines), and Air India and also includes all imports by defense PSUs, ordinance factories, and private
participants of the industry too.
The Government of India has also shown keenness in allowing international collaboration for the production of weapon systems, which
are purely used for non-lethal purposes such as:
• Technologies/equipment for counter terrorism
• Surveillance, communication equipment, and sensors for border management
• Cyber security - synergies in the field of information technology
• Devices to neutralize improvised explosive devices (IEDs)

DEF + CONTRACT INDIA 2011

Host City Hyderabad :


The Venue An emerging defence and aerospace hub
Newly built NSIC Marketing-cum-Business park is a Hyderabad is the capital city of Southern Indian State of Andhra
five story building. It has around 1,50,000 sqft of Pradesh. It has now developed into a major hub for the information
covered area with the provision of exhibition space technology industry earning the sobriquet “Cyberabad”. With the
on the ground floor. It is situated at the NSIC - TSC development of the Aerospace Special Economic Zone Hyderabad is
Complex, ECIL post, Kamla Nagar, Kushaiguda, fast emerging as an aerospace hub growing as a key platform for civil
Hyderabad spread over a sprawling area of 8 acre. and defense aircraft component manufacturing; aircraft
Some of the prominent features of the Complex are: maintenance, repair and overhaul; test laboratories and training; and
• 100% Power Back up Facility research and design. A number of prestigious Technical Research and
Development institutions of India are clustered in and around the
• Ample Parking Space city such as Defence Research and Development Organization
• Capsule elevator (DRDO) related institutions for Integrated Guided Missile
• Conference Hall with seating capacity of 100 Development Programme (IGMDP), Defence Metallurgical Research
persons Laboratory, Defence Electronics Research Laboratory (DERL), Council
of Scientific & Industrial Research, Hindustan Aeronautics Limited,
• Exhibition Hall Indian Space Research Organization (ISRO), National Aerospace
• Food Court Laboratories, National Remote Sensing Agency (NRSA), Electronics
Corporation of India Limited (ECIL) to name a few. Hyderabad is well
• Earthquake resistant structure, CCTV for
connected by air, rail and road.
security surveillance
Both domestic and international flights operate from its new swanky
• Modern fire Fighting system technology
Rajiv Gandhi International Airport- which boosts of world's largest
runway.

The financial support for MSMEs through Ministry of MSME is limited. Apply today!
Contact Organizers
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National Small Industries Corporation Ltd. Federation of Indian Micro and Small
Delhi Office : Hyderabad Office : ISO 9001 : 2008 & Medium Enterprises (FISME)
NSIC Bhawan, Okhla Industrial Estate South 203, Sri Dattasai Complex, B - 4/161 Safdarjung Enclave,
New Delhi - 110020 RTC 'X' Road, Musheerabad, New Delhi - 110029
Telephone : 011 - 26926275, Hyderabad - 500020 Telephone : + 91 - 11 - 26187948, 26712064,
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E-mail : info@nsic.co.in Fax : 27617777 E-mail : info@fisme.org.in
Website : www.nsic.co.in E-mail : nsic_hyd@dataone.in Website : www.defcontractindia.com
Contact : Mr. M.P. Singh Contact : Mr. K. Srinivas Contact : Mr. Vijit Vasudevan
Cell. : + 91 - 9013366160 Cell. : + 91 - 9849649228 Cell. : + 91 - 9999452004
E-mail : mpsingh@nsic.co.in E-mail : ravikumar@nsic.co.in E-mail : vijit@fisme.org.in