Two extremely significant markets – aerospace and defense. The end-product of the Aerospace industry is commercial aircraft, space vehicles, satellites, and general aircraft; and that of the Defense sector is about the production, procurement, sale, and servicing of military products, systems, and weapons.
The market for commercial aircraft is the commercial airliners of the world that are meant for passenger and good movement. Generalized aircraft is used by leaders of nations, businessmen, companies, etc. Defense products on the other hand are used extensively by the Army, Navy, and Air Force of different countries. The common grounds for both these industries are technology and precision-based reliability.
In India, the Aerospace and Defense Industry is one of the most strategic industries in the country. India has the second-largest defense force in the world. The size of the military force, growing political instabilities across the borders, and rising cases of terrorist infiltration have directly impacted the growth of the defense sector in the last few years. Our defense budget is the fifth highest in the world today. Though 70% of our defense requirements are still met by imports, the focus of the Central government is now on local sourcing of high-tech defense, aerospace systems, and equipment. There exists a huge potential in this sector for both, foreign and local private investors.
The Aerospace Industry in India, though focuses both on Civil and Defense segments, it predominately facilitates the Defense sector. In recent years, the civil aviation sector has recorded impressive growth primarily because of the growing purchasing power of the Indian middle-class and the entry of major airlines in the domestic realm.