Indian defence to be around $620 billion over FY 2014-FY2022

Cumulative defence spend in India is likely to be around a whopping $620 billion (Rs 38,468 billion) over FY14-FY22, according to a report by Ficci and Centrum titled ‘India: Aerospace & Defence’.

With the country looking to manufacture more and more defence equipment as part of the Narendra Modi government's Make in India campaign, capital expenditure will form nearly half of this spending at $295 billion (Rs 18,293 billion) over the same period.

The addressable opportunity for Indian corporates in defence space is pegged at $41 billion (Rs 2,708 billion). Government-owned companies in the defence space include Bharat Electronics (BEL), Bharat Earth Movers (BEML) and Mazgaon Docks while large private entities involved in manufacturing of defence equipment include Larsen & Toubro, Tata Group, Mahindra Group and Bharat Forge.

Out of this pie of $41 billion, the opportunity for Indian companies, including public sector companies as well as private sector, will grow seven times from $6 billion in FY14 to $41 billion by FY22.