Market Trends of India Aviation, Defense, And Space Industry
Civil Aviation Segment to Showcase Remarkable Growth During the Forecast Period
- The Indian aviation industry, in recent years, has witnessed noteworthy growth in terms of aviation operations. Moreover, the industry has also been considered to be the third largest in the world, and this growth can be attributed to a significant increase in the number of people within the country, showing a greater propensity to travel.
- There has been a substantial rise in the demand for new and advanced aircraft to meet the needs of air travelers and also improve their in-flight experience. This has led to various commercial aircraft operators within the country investing significantly in the acquisition of new and technologically advanced aircraft. For instance, in September 2023, Air India announced that they acquired the first A350-900 aircraft by way of a finance lease with HSBC. Moreover, Air India ordered a total of six A350-900 aircraft, and five aircraft are scheduled for delivery through March 2024.
- On the other hand, there has also been significant growth in the number of new airport constructions within the country. A significant increase in the number of air traffic passengers year on year has led to increasing congestion and bottlenecks at airports in India. This has led to substantial growth in the development of new airports in order to ease the passenger burden on existing airports. For instance, in December 2023, the Maryada Purushottam Shri Ram International Airport, which is being built in Ayodhya, reached the final stages of construction. According to the airport authority, DGCA will inspect the Shri Ram airport, and the operation of flights from the airport will commence shortly.
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The Weapons and Munitions Segment Dominates the Market During the Forecast Period
- India, in recent years, has witnessed significant growth in terms of defense spending, and the growth in border disputes of the country with neighboring nations such as China has propelled the defense forces of India to work towards the acquisition of new and advanced weapons and ammunition to increase their capabilities.
- Furthermore, various companies have also established partnerships with the defense sector of the country and have increased their investments in terms of research to develop advanced weapons and munition armaments that meet the requirements of the military thereby giving a significant boost to indigenous manufacturing.
- For instance, in September 2023, the Indian Army announced that they plan to acquire next-generation guns, which will be developed and manufactured by domestic companies under a proposal worth USD 60 billion. Moreover, the new towed gun system will be much lighter and more versatile than the current artillery guns and will be loaded with advanced technology.
- As per the Department for Promotion of Industry and Internal Trade (India), defense companies in India manufactured approximately 601,380 metric tons of cartridges in 2022, a significant increase from 538 thousand metric tons of cartridges which were manufactured in 2021. Moreover, the country is also working towards being the prime manufacturing hub for advanced 155mm artillery ammunition for all types of artillery guns, which are operated by over 75 armies worldwide that are making use of 155mm ammunition.
- Also, in February 2023, the Ministry of Defense announced the selection of five domestic ammunition manufacturers to supply around two thousand units of 155mm terminally guided munitions (TGMs) for the Army's in-service 155mm guns of 39,45 and 52 caliber artillery guns. Thus, growth in the development of indigenous weapons production and the substantial growth in defense spending will lead to the segment witnessing significant growth within the market during the forecast period.
