(MENAFN- America News Hour)
In a recent published report, Kenneth Research has updated the Market report for Defense Expenditure Trends in India for 2021 till 2030. Report further now discusses; the various strategies to be adopted or being adopted by the business players across the globe at various levels in the value chain. In the view of the global economic slowdown, we further estimated that China, India, Japan and South Korea to recover fastest amongst all the countries in the Asian market. Germany, France, Italy, Spain to take the worst hit and this hit is expected to be regain 25% by the end of 2021- Positive Growth in the economic demand and supply.
U.S. Market recovers fast; In a release on May 4th 2021, the U.S. Bureau and Economic Analysis and U.S. Census Bureau mentions the recovery in the U.S. International trade in March 2021. Exports in the country reached $200 billion, up by $12.4 billion in Feb 2021. Following the continuous incremental trend, imports tallied at $274.5 billion, picked up by $16.4 billion in Feb 2021. However, as COVID19 still haunts the economies across the globe, year-over-year (y-o-y) average exports in the U.S. declined by $7.0 billion from March 2020 till March 2021 whilst imports increased by $20.7 billion during the same time. This definitely shows how the market is trying to recover back and this will have a direct impact on the Healthcare/ICT/Chemical industries, creating a huge demand for Defense Expenditure Trends in India Products.
Download Sample of This Strategic Report: –
According to the World Bank, the total number of air passengers across the globe witnessed an all-time high in 2019, amounting for about 4.5 billion people, which dipped to 1.8 billion people in 2020 in the wake coronavirus outbreak. However, our analysis shows that the number of scheduled air passengers globally increased to more than 2 billion in 2021. With the inception of 2022, the landscape of commercial air travel and customer order activity are projected to be in a better shape than expected for the aerospace industry. The speedy distribution of COVID-19 vaccines across the world is also paving the path towards normalization of air travel, which in turn is evaluated to offer abundant opportunities for the growth of the Defense Expenditure Trends in India in the years to come.
“Final Report will add the analysis of the impact of COVID-19 on this industry.”
Since 2014, the Indian government has undertaken several initiatives to promote indigenization and self-reliance in defense by harnessing the capabilities of public and private sector industries. As of April 2020, India was among the top three global military spender. The US, China, India, Russia, and Saudi Arabia accounted for more than 60% of the global military expenditure in 2019. The military expenditure in India includes the pension bill for 3.3 Mn retired veterans and defense civilians. The military expenditure increased by a massive 259% over 30 years (from 1990 to 2019) and by 37% between 1990 and 2019. The defense budget has been growing marginally year-over-year. It has almost doubled in the last five years. However, it is insufficient to upgrade the weapons. This is because the significant share of the allocated amount for the Ministry of Defense (MoD) goes into paying salaries and pensions of armed forces and civilians.
Impact of Covid-19
The defense industry in India witnessed a significant downturn on account of global trade restrictions following the outbreak of COVID-19. Defence public sector undertakings had to stop working on most of the projects after the imposition of the lockdown. The sector shifted its focus to manufacturing essential commodities only, such as personal protective equipment (PPE) kits, masks, and ventilator parts, to help the government fight the pandemic. Around 90% of the small private manufacturers that supply essential components to the industry had to halt the production of components till May 30th, 2020.
The government had to tighten defense expenditure on account of the global crisis. In the first quarter of FY 2020, it withheld 15% – 20% of funds reserved for the defense ministry. In May 2020, it stated to abolish 9,300 posts in the military engineering service (MES).
Market segment insights
The defense budget has increased at a steady rate in the last five years, from FY 2016 to FY 2020. Though the overall defense budget has been growing, the defense expenditure has declined as a proportion of the GDP. The Indian Army accounts for the highest share of the defense budget, followed by the Air Force, Navy, DRDO (Defense Research and Development Organisation), and ordinance factories.
Key challenges of the market
Indian government has not been able to attract significant private sector investments in the defense manufacturing industry. This has resulted from delays in decision-making on the government's part, placing unsystematic orders, canceling tenders, and placing unreasonable qualitative requirements by the Indian Armed Forces. Several Indian private defense companies had invested in improving their production capabilities to receive government support and orders. However, they have been left disappointed. For example, in May 2020, the private sector defense equipment manufacturing start-up, Tonbo Imaging, wrote an open letter to the prime minister underlining the cancelation of orders and delays in payments.
In May 2001, the defense sector, which was only reserved for the public sector, was allowed 100% participation by the Indian private sector bound by licensing. A total of 460 defense licenses were issued by the government, covering 275 companies, till 31st December 2019. In the Defense Procurement Policy 2020 (DPP), the limit of foreign direct investment (FDI) through the automatic approval route has been increased to 74%. BAE Systems, Pilatus, Lockheed Martin, Boeing, Rafael, and Dassault Aviation are some of the major investors in the industry.
Download Sample of This Strategic Report: –
The Market report answers the following questions:
What is the aim of the report?
- The market report presents the estimated market size of Defense Expenditure Trends in India by the end of forecast period. Additionally, the historical and current market size is also examined in the report.
- Based on various indicators, the Year-on-Year growth (%) and compound annual growth rate (CAGR) for the given forecast period is offered.
- An overview of the Market based on geographical scope, market segmentation and financial performance of key players is presented in the report.
- The report presents current trends in the industry and future scope of the Market in North America, Asia Pacific, Europe, Latin America and Middle East and Africa.
- The various parameters accelerating the growth of Market are incorporated in the research report.
- The report analyzes growth rate, market size and valuation of the Market during the forecast period.
What aspects regarding the regional analysis Market are included in this report?
- Geographical regions covered in the report include North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
- The report consists of detailed region-wise analysis of current and future market trends, providing information on product usage and consumption.
- The growth rate of the market in every region, including their countries over the forecast period is included in the market report.
Based on what factors are the key market players assessed in this report?
- The report offers detailed analysis of leading companies in the market across the globe.
- It provides details of the major vendors involved in the Market including Key Playes
- A comprehensive overview of each company including the company profile, generated revenue, pricing of goods and the manufactured products is incorporated in the report.
- The facts and figures about market competitors along with standpoints of leading market players are presented in the report.
- The recent developments, mergers and acquisitions related to mentioned key players are provided in the market report.
What is the key information extracted from the report?
- Extensive information on factors estimated to affect the Market growth and market share during the forecast period is presented in the report.
- The report offers the present scenario and future growth prospects Market in various geographical regions.
- The competitive landscape analysis on the market as well as the qualitative and quantitative information is delivered.
- The SWOT analysis is conducted along with Porter's Five Force analysis.
- The in-depth analysis provides an insight into the Market, underlining the growth rate and opportunities offered in the business.
Request for Full Report:
About Kenneth Research:
Rated as one of the best multi-client reselling agencies, Kenneth Research provides a single platform for insights on numerous industries for investors and companies who are willing to expand their business. The platform caters to industries that include Healthcare and Pharmaceuticals, Chemicals, ICT and Telecom, Energy and Power, Automotive and Transportation, and several others, and offers the best strategic business consultancy services at a global level.
Name : Kenneth research
Phone: +1 313 462 0609
Eli is a freelance writer and possess double graduation degree in physics and chemistry. She is an intense writer covering everything for Science and Tech to Business, Entertainment, Sports and Lifestyle.
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.