Aerospace Industry in India is the fastest growing in the worldPricewaterhouseCoopers and the Confederation of Indian Industry today released a report titled Changing Dynamics* – India’s Aerospace Industry at Aero India 2009. The report was released by Hon. Minister of State for Defence, Shri Pallam Raju.
By: R&PM Edelman The report is based primarily on interviews with industry participants, secondary research and internal insights. It suggests that while making projections during a period of global recession is very difficult, from a long term perspective, the cyclical nature of the industry and its strategic importance will drive a recovery. Emerging markets, particularly India and China, will drive the civil aviation sector, while security concerns from the global war on terror will primarily drive military expenditure. Dhiraj Mathur, India leader – Aerospace & Defence Practice, PricewaterhouseCoopers, said, “We are delighted to have partnered with CII for this report on the Indian aerospace industry. The Indian aerospace industry is one of the fastest-growing aerospace markets in the world and has attracted the interest of major global aerospace companies. All segments in the aerospace industry are showing a significant level of growth. India has several advantages, such as talent availability, manpower cost competitiveness, liberalised civil aviation and defence policies, a strong domestic manufacturing base and the presence of specialist capabilities amongst others, that positions it favourably to become the manufacturing and MRO hub for global and domestic aerospace companies.” The Indian aerospace industry has an expanding consumer base comprising airlines, businesses and high net worth individuals. The rapid growth of this industry has attracted major global aerospace companies to India. All segments in the aerospace industry, including civil and military aviation and space, are showing a significant level of growth. The report covers two aspects of the industry: 1. India as a Manufacturing Destination: 2. India as an MRO Destination: As per the report, while the Government of India has undertaken significant liberalisation in the investment policy regime, particularly in civil aviation, there remain critical issues, especially in the tax regime that need to be addressed if India has to claim its position as an important global manufacturing hub in this sector. The report also contains a detailed analysis of the global aerospace industry and India’s emerging role in it. ENDS Notes to Editor: About PricewaterhouseCoopers PricewaterhouseCoopers Pvt. Ltd. (www.pwc.com/ PwC has offices in Ahmedabad, Bangalore, Bhubaneshwar, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi and Pune. “PricewaterhouseCoopers” The name PricewaterhouseCoopers is one word, with uppercase P, uppercase C, and all other letters in lower case. About PricewaterhouseCoopers' Aerospace and Defence Practice PricewaterhouseCoopers (PwC) has a strong global Aerospace and Defence (A&D) practice that serves most of the leading global companies. To assist our domestic and international clients in participating in the exciting growth of the industry in India, the A&D practice was set up in 2007 in India. With a deep understanding of government regulations and industry issues, PwC assists clients in various aspects of their businesses including providing regulatory advice and assistance in obtaining approvals, tax and regulatory structuring and advisory services. Our team consists of professionals with diverse backgrounds and experience integrated across all lines of service. To provide the highest possible level of service, our consultants have developed a high level of industry expertise. The team constantly shares knowledge with industry players and the Government. End
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