Trends for Indian Defence

Top 10
Offset Business
The Indian Defence presents a significant opportunity
for Indian & foreign companies across the supply
chain. With the third-largest armed forces in the
world, India’s defence budget is about 1.90% of its
GDP. Here are the top trends that you need to look
1.90% of GDP forward in 2017:

1
India ranks among the top 10 countries in the world in
terms of its military expenditure and import of defense
equipment percentage.

2 The India Defense Industry has grown from $21.9billion in

2010-11 to $37.3billion in 2016-17, at a CAGR of 9.25%.

$37.3billion

$21.9billion }CAGR of 9.25%

2010-11 2016-17

3
As per the Indian Ministry of Defence(MoD), 19 contracts
worth about $15 billion had been awarded to foreign
majors from 2007 to 2012.

19
Contracts
$15
Billion

4 30% of these deals translate into $4.5 billion in offset

opportunities.

30%
$4.5
Billion

5
The recent Rafale deal struck by the Government of India
recently is alone expected to generate €3 billion in offset
opportunities.

€3
Billion

6 The offset opportunity can rise from $2.4 billion in

2013-14 to over $10 billion per annum by 2019.

offset opportunity

2013-14 2019

Major feature of the 2017 offset policy is that it

7 increases the threshold of defence offset to ₹2000 crore

from the current level of ₹300 crores under “buy” and
'buy and make” categories.

2017

8
Ministry of Defece(MoD) has the largest budgets in the
government. For instance,₹3,59,854 crore has been
allocated ($53.5 billion) For the year 2017-18.

“ “
₹ 3,59,854
crore

9 50% of the defence manufacturing in India is dominated by

the international players.

50%
International players

10 The share of imports is projected to drip down by 20-25%

in 4-5 years down the line.

20-25%

Imports

MosChip support global OEMs to accomplish offset obligations in the

aerospace and defence markets, globally. Proactively positioning itself with the
modulations and variations of ‘Make in India’, MosChip provides innovative
engineering solutions. Simultaneously, with reduced costs and increased
flexibility, we are able to meet the industry needs with global standards.

Moschip
Source:
http://www.indianeconomy.net/splclassroom/101/what-is-indias-defence-offset-policy/#sthash.7USV4dI4.dpuf
http://www.indiandefencereview.com/news/impact-analysis-of-the-indian-defence-offset-program/
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