How many Defence industry are there in India?

India has a domestic defence industry of which 80\% is government owned. The public sector includes DRDO and its 50 labs, 4 defence shipyards, 5 defence PSUs and 41 ordnance factories….FDI in Defence.

What are the challenges faced by India’s defence sector?

Understandably, the countrys defence sector was adversely impacted by lack of access to latest technical developments and other systemic factors. Consequently, India, which has always had tenuous relations with certain neighbours, was compelled to start acquiring state-of-the-art defence equipment.

How did the pre-liberalisation period affect the Indian defence sector?

The pre-liberalisation period witnessed an India which was dependent on archaic technology and dominated by the PSU sector, license / permit raj and a weak domestic private sector. Understandably, the countrys defence sector was adversely impacted by lack of access to latest technical developments and other systemic factors.

What is India’s share in global defence imports?

Since the past four years, Indias share of global imports of defence related goods was the highest in the world at around 14\% – almost double of Saudi Arabia, which is ranked second. As per statistics of 2016, India is the 5thlargest military spending nation in the world.

Why is there a growing interest in the defence sector?

Over the last few years this has led to significant interest in this sector from domestic and foreign companies alike – which is primarily driven by defence equipment demand in India. One of the interesting facets of this monopsony sector is the multitude of stakeholders that are involved even while there is only one primary buyer (the Government).