REPORT

Date June 2010

File No.
Our ref. AJ
The Aerospace and Defence Sector in India Case No.

Prepared by
The Trade Council in India
New Delhi
The Aerospace and Defence Sector in India:

 3rd Largest military force in the world, military expenditure in India was US$ 23.9
billion in 2006 (Source: SIPRI) and has grown steadily over the past few years.

 Indian government has launched US$ 100 billion investment plan over the 2007-
12 period to renew the Armed Forces’ equipments. This is in consideration of
obsolescence of a significant part of the military equipment (70% of this is of
Russian origin).

 Government has put tender contract for 126 fighter aircrafts, estimated to be
worth more than US$ 10 billion.

 Indian Navy is already working with France for purchase of 6 Scorpene

submarines. Viraat Aricraft carrier will be replaced by Vikrant class carrier, to be
developed under the cooperation with Italian shipyard Fincantieri.

 Armoured Vehicle market also has opportunities with the renewal of existing
vehicles and purchase of T-90 and Arjun main battle tanks in the near future.

 Indian continues to depend on imports for a lot of systems, subsystems and even
parts, with local production remaining limited to the low end of the technology
spectrum.

 Indian Aerospace and Defence (A&D) industry is historically located in Bangalore,

with all the major public A&D companies, Hindustan Aeronautics Limited (HAL),
Bharat Electronics Limited (BEL) and Indian Space Research Organization
(ISRO), being present there.

 Most collaboration with European A&D companies has taken place in and around
Bangalore.

 Most European A&D prime contractors are present in India; namely BAE
Systems, EADS, Safran, Thales, Fincantieri, MAN etc.
Opportunities for Danish companies:

 Several Danish companies have expertise in aero-structures, airborne systems,

integrated defence systems including radars and surveillance equipments. With the
Indian military on expansion mode, this is a good market for the hi-end Danish
products.

 Danish companies are pretty advanced in the development of communication

systems which can find usage in different military vessels and equipments in India.

 Civil aviation has opened up in a big way in India and there is huge expansion
planned in the communication infrastructure like air traffic control equipments.
Danish companies have a clear opportunity in this growing area as well.

Trade Council in India: New Delhi, Bangalore, Ahmedabad 2

Contact:

Trade Council in India

Embassy of Denmark
11, Aurangzeb Road
New Delhi-110011

Anshul Jain, Commercial Officer

B&C, Infrastructure & Defence
ansjai@um.dk
M: +91-98100-28527

Trade Council in India: New Delhi, Bangalore, Ahmedabad 3