American firms are seeking for private ownership in India’s defence market as the market size of India’s defence and aerospace sector is a huge draw.
The sector is set to reach $70 billion, from $1.7 billion over the next 10-12 years. Ministry of Defence is also intending to spend $250 billion over the next decade on capital acquisition which opens up great opportunities for US companies to invest in India.
“Recognizing India as a major defence partner by the US is indicative of India’s elevated status in US export considerations,” said an executive present at the AMCHAM India Door knock which happened in Washington DC last month. “Building the defence manufacturing ecosystem through strategic partnerships is a high priority, he added.”
“There are over 5,000 tech start-ups, making India the second most attractive entrepreneurship area after Silicon Valley. Many state governments are promoting entrepreneurship, applying carefully targeted strategies. The India opportunity cannot be ignored,” said another official.
US offered India an armed version of the Guardian drone earlier this month and approved sale of 22 drones to India. These drones are intended to protect the Indian ocean. Boeing has also partnered with private players in India to manufacture the F/A-18 super Hornet, and is seeking to develop partnership with two Indian firms for future technologies.
Last month, the US department made a deal of selling 180 AGM-114L-3 Hellfire Longbow missiles, 200 Stinger Block I-92H missiles, and 90 AGM-114R-3 Hellfire II missiles, apart from cannons and ammunition. The six additional AH-64Es are expected to be delivered by 2020.
