The capital expenditure is projected to grow at an accelerated pace in the Indian aerospace & defence market. Growing focus on indigenous manufacturing will open up long term opportunities for private sector manufacturers and MSME's engaged in supplies of raw materials, components, assemblies and subassemblies significantly as India realizes its objective of self-reliance.
As per the Union Budget 2023-24, 25% of defence R&D budget has been earmarked for private industry and start-ups which will pave the way for innovation of new defence technologies in India. Till October 2022, a total of 595 Industrial Licences have been issued to 366 companies operating in Defence Sector.
India has the world's third-largest defence expenditure, as of 2022, and expects to export equipment worth US$ 15 billion by 2026. Defence exports grew by 334% in last five years; India now exporting to over 75 countries due to collaborative efforts. The Ministry of Defence has set a target of achieving defence exports worth Rs. 35,000 crore (US$ 4.27 billion) by 2024.
Delhi has for long firmly been entrenched as the headquarters of Indian defence forces and
some critical decision making around manufacturing, acquisitions, upgradations in
aerospace and defence sector happen in the capital city of the country. In addition to
this many an SME enterprise and some very important defence manufacturing enterprise
including but not limited to DPSU’s, OFB’s and private domestic and international
manufacturers have a strong base in northern India. Delhi is also home to main offices
of organizations like Defence Research And Development Organization (DRDO), Bharat
Electronics Limited (BEL) & Hindustan Aeronautics Limited (HAL) and multiple R&D labs,
Ministry of Defence, Ministry of MSME, Ministry of Heavy Industry etc which presents the
ideal eco-system that an event like AeroDef Manufacturing would need.