India’s expertise in the field of research and development has driven its aerospace industry to become the most rapidly growing aerospace industry in the world.
Confederation of Indian Industry (CII) and PricewaterhouseCoopers revealed that Indian aerospace industry is the fastest growing aerospace industry across the world, as reported by INDIA TODAY.
It is anticipated that India’s MRO (maintenance, repair and overhaul) segment will grow at 10%, reaching US$ 1.17 Billion by 2010 and US$ 2.6 Billion by 2020. The aerospace industries of India and China are expected to surge as their contribution to the global GDP rises up to 6-8%.
While the activities in the Indian aerospace sector are profoundly driven by the government/public sector units, there is huge potential in the “design to build” lifecycle for both public and private sectors. India is rapidly emerging as a potential international hub for manufacturing and MRO on the back of its engineering workforce, fast developing engineering services/R&D expertise and strategic position in the South East Asia.
Moreover, the sector will grow simultaneously with the aviation sector as a support service. In addition, the growth is likely to be supported by the country’s strong economic growth, which has boosted the domestic demand for aircrafts; the liberalization of civil aviation policies; offset requirements and strong domestic manufacturing base.
The Indian aerospace industry has an expanding consumer base, which includes airlines, businesses as well as high-end individuals. Attracted by the rapid growth in Indian aerospace industry, several big global players are looking to enter the market. More importantly, the growth trend is being displayed by all the segments of this industry comprising civil and military aviation and space.
The government has undertaken liberalization process in the investment policies, particularly in civil aviation segment. But still, there remain some critical issues, specifically in the taxation rules (particularly, service tax and custom duties). India needs to address the aforesaid issues to strengthen its status as one of the global manufacturing hub in the aerospace industry.
According to a Research Analyst at RNCOS, “It will be too early to make any long-term projection, but recurring nature of the Indian aerospace sector and its strategic significance is expected to help the industry in recovery. This sector will give impetus to the civil aviation sector in the emerging markets, particularly in India. On the other hand, security concerns rising from the global fight against terrorism will largely raise the military expenses in this sector.”
Related Market Research Reports:
Aerospace Industry Forecast to 2013
Global Aerospace Market Analysis
US Aerospace Industry Analysis
