The defense sector of India is growing by the day and so is it'sexpenditure to modernize the Armed forces. These expenses are going tomake India the second highest military spender in Asia-Pacific by theyear 2016 and globally seventh during the same time period, revealed astudy by Frost & Sullivan.
The defense budget for the fiscal year 2010-11 has gone up over eight percent as compared to previous years.This year's budget touched an amount of Rs. 1.47 lakh crore. Withgovernment importing a major share of its defense requirements, theamount is set to reach to $100 billion.
The report of the study further added that domestic private and publicindustries can do business in the areas of defense offsets and homelandsecurity. They can end up in partnerships or on their own. There areseveral prospects open in the fields of military aviation, navalsystems and land systems.
A release from the research firm said that defense offsets aremandatory business spin offs to the local industry, and play a key rolein driving the local defense industry base. Defense offsets could be 30to 50 percent of the value of the purchase; they are a big opportunityfor the local industry to partner with the best global companies interms of technology and be their sources of products and services, saidthe report.
The consulting firm said, "The Ministry of Defense now allows bankingof defense offsets, which makes the landscape interesting and alsoopens avenues for greater Indian private sector industry participationapart from the defense PSUs."
Homeland security is a relatively new area and is fast catching upin industrial, manufacturing and infrastructure sectors, along withhigh growth areas such as airport security, mass transport security,infrastructure protection, seaport security and maritime security.