India is in an era of unprecedented military modernization.
We have the third largest armed force in the world with an annual budget of about US$ 38 billion and 40% of this is used for capital acquisition. In the next 7-8 years, we would be investing more than US$ 130 billion in modernization of our armed force.
The Indian defence sector is at the cusp of an inflexion point wherein the future growth will be propelled by indigenous manufacturing both for domestic & global clients. The sector will witness strong growth over the next decade due to its current size, longevity, and competitive advantages. As per FICCI-Centrum report the market opportunity for Indian companies (PSU & Private) will grow 7 times from $6bn in the year 2014 to $41bn by 2022.
India has the fourth largest rail freight carrier in the world and has the largest passenger carrier. Mass Rapid Transit Systems (MRTS) projects are being build across the country. Major developments in this sector cover · Components manufacturing · Infrastructure projects · Railway lines to and from coal mines and ports · Projects relating to electrification, high-speed tracks and suburban corridors · Power generation and energy-saving projects · Setting up of wagon, coaches and locomotive units · Network expansion etc.
Civil and military aviation are undergoing major transformation. Major modernization initiatives in the Indian Armed Forces and growth in commercial aerospace sector has fuelled the growth of Indian aerospace industry. Futuristic technologies in aviation such as increased use of composites, modern engine technology, all weather capabilities and so on are being adopted, Government policies and support are providing the necessary impetus to industry that is poised to become a global player with export potential.
The total spending in the next 5 years is expected to be between USD25 billion for commercial aircrafts and USD100 billion as defence expenditure. The total offset opportunity for the aerospace sector is valued to be at least USD10-15 billion.
India is also fast emerging as a favourite global destination as far as Maintenance, Repair and Overhaul (MRO) sector is concerned. India's MRO segment is estimated to grow at 10 percent and reach USD 6 billion by 2021.
India has the fifth largest power generation portfolio in the world and its current renewable energy contribution stands at 44.812 GW which includes fourth largest installed capacity of wind power. Third largest installed capacity of concentrated solar power (CSP) Renewable energy contributes 14.7% of the total installed capacity in the country as on July 2016. The Indian Government has an ambitious target of 175 GW of renewable power by 2022 which will include 100 GW of Solar power, 60 GW from wind power, 10 GW from biomass power and 5 GW from small hydro power.
India has over 7500 kilometres of coastline with 12 major and about 200 minor and intermediate ports. 90% of the country's trade by volume and 70% by value is moved through maritime transport. Projected cargo traffic to be handled by Indian ports by 2021-22 is expected to be 1695 million metric tonnes as per the report of the National Transport Development Policy Committee (an increase of 643 million metric tonnes from 2014-15). Demand for ship repair services will also increase, providing opportunities to build new dry docks and set up ancillary repair facilities. To attract investment for the growth of this sector, the Government has allowed 100% Foreign Direct Investment (FDI) in the shipping sector. 100% FDI is allowed under the automatic route for projects related to the construction and maintenance of ports and harbours.
The Indian road network, comprising of National Highways, Expressways, State Highways, Major District Roads, Other District Roads and Village Roads, is globally the 2nd largest spanning 5.5 million kilometres.
Development of Roads and Highways is one of the priority areas for the government and an ambitious target has been set to increase the length of national highways to 200,000 km. The government aims to build at least 90,000 km of highway network by the year 2019.
The seven phased NHDP is being implemented by the National Highways Authority of India (NHAI) with a total estimated expenditure of USD 92 billion. As per the largest highway development project in the country, more than 49,260 km of the roads are being upgraded since 2000, to match international standards.