2013-09-20 09:02:21 - New Defense research report from Business Monitor International is now available from Fast Market Research
India's defence establishment received some welcome news in the first half of 2013 when the Finance Ministry made a U-turn on defence spending cuts, agreeing to trim the budget only slightly, rather than inflict deep cuts as initially planned. Nonetheless, funding is going to remain flat for the next couple of years, which is problematic enough for a military desperate to move ahead with a range of overdue procurement programmes.
The scale of the challenge facing Indian defence was highlighted in June when the Army gave the MoD a list of top-priority items it now requires urgently - it ran to 700 items valued at around U$35bn. The Ministry of Defence is attempting to expedite some long-delayed programmes, such as the
acquisition of new artillery, but there is a sense that the Indian military may never get on top of its extensive wish-list.
Full Report Details at
- www.fastmr.com/prod/673293_india_defence_security_report_q4_2013 ..
However, flooding in Uttarkhand state in June - a disaster that claimed an estimated 6,000 lives - may hasten the procurement of additional heavy-lift helicopters and fixed-wing aircraft. The military was heavily involved in the rescue operation and by all accounts performed well, but there was an acceptance that greater numbers of modern aircraft would have helped the IAF and the Army to accomplish their hazardous rescue missions. The big-ticket procurement of Rafale fighter jets from French supplier Dassault also remains stalled over Indian demands that Dassault assume full responsibility for the quality of all 126 jets ordered for the IAF - even though the majority of the aircraft will be assembled locally by Hindustan Aeronautics Limited, as stipulated by the MoD's procurement terms. The deal is now unlikely to be finalised until late 2013, and there is a risk that the contract could unravel entirely.
Large-scale investments in foreign defence equipment will continue to be made. Yet there are two sides to the Indian defence story. On the one hand, India remains the world's largest importer of weaponry, and is moving ahead with the procurement of some highly advanced systems. On the other hand, structural weaknesses within the Indian defence bureaucracy mean that procurement programmes remain prone to lengthy delays and overspending, while the local defence industry continues to underperform.
Relations with China have improved after Chinese Premier Li Keqiang visited India in May, and Indian Defence Minister A.K. Antony went to China in June. Discussions are now under way about establishing a new Border Defence Co-operation Agreement to protect against unintended conflict along the disputed border. However, India claimed that Chinese forces had again crossed the border into Indian territory just weeks after Antony's visit, underlining that this will be a difficult issue to resolve.
Meanwhile, the election of Nawaz Sharif as Pakistan's prime minister in May 2013 has raised hopes for a revival of the peace process between New Delhi and Islamabad.
Report Table of Contents:
BMI Industry View
- India Security SWOT
- India Defence & Security SWOT
- Business Environment
- Table: India's Defence Expenditure, 2010-2017
- Table: India's Defence Expenditure Scenario - Changing % Of GDP, 2010-2017 (US$mn)
- Table: Manpower Available For Military Service, 2010-2017
- Table: India's Armed Forces, 2000-2009 ('000 personnel, unless otherwise stated)
- Table: India's Defence Trade Balance, 2010-2017 (US$mn)
- Table: India's Defence Imports, 2010-2017 (US$mn)
- Table: India's Defence Exports, 2010-2017 (US$mn)
- Economic Analysis
Industry Risk Reward Ratings
- Asia Security Risk Ratings
- Table: Asia Pacific Regional Security Ratings
- Table: Asia Pacific State Vulnerability To Terrorism Index
- India Security Risk Ratings
- India Defence Market Overview
- India Security Overview
- Long-Term Political Outlook
- BAE-HAL Software Ltd
- Bharat Dynamics Ltd (BDL)
- Bharat Electronics Ltd (BEL)
- Hindustan Aeronautics Limited (HAL)
- Honeywell International India
- Ordnance Factories (OF)
- Rolls-Royce International
- South Asia Security Overview
Global Industry Overview
- Global Political Outlook
- Defence Industry
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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