Key Investment Opportunities

Aerospace

• Demand for MRO facilities is increasing in India due to consistent double-digit growth in the aviation sector.
• Indian carriers are projected to increase their fleet size to 1,100 aircraft by 2027.
• AAI has taken up developmental projects worth around INR 25,000 crores over the next five years for expansion and modification of existing terminals, new terminals, expansion or strengthening of existing runways, aprons, air navigation services, control towers, technical blocks, etc.

Defence

• Supply chain sourcing opportunity

• Modernization of armed forces

• Infrastructure development

• Research and Development

• Defence product manufacturing – Indigenously designed, developed, and manufactured (IDDM) is the new method of capital procurement.

Recent Developments

• The global recovery in air travel has been mirrored in India, and this is a sector that holds immense potential. By 2024, the domestic aviation market in India is expected to grow to $30 billion, making it the third largest globally.

• The Indian Government set a target of increasing the number of airports across the country from 140 to 220 by 2025.
• There is also a plan to create 33 new domestic cargo terminals and 15 new flight schools, and there is an increased focus on unmanned aircraft systems.
• India’s total 2022 defence budget is $70 billion. 68% of the budgeted defence capital expenditure is earmarked for the procurement of domestically manufactured weapons and military platforms to strengthen the indigenous arms industry, an increase from 58 per cent last year.
• India enjoys a unique status as a Major Defense Partner of the United States, opening opportunities to procure sensitive defence technologies. Indian companies are partnering with foreign firms to present jointly developed capabilities in line with “Make in India” requirements.