New market study, "India Defence & Security Report Q2 2011", has been published

New Defense research report from Business Monitor International is now available from Fast Market Research
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April 22, 2011 - PRLog -- India maintains a substantial defence force. Like most countries, it scaled back the size of its military with the ending of the Cold War. In India's case the reduction in force numbers was 120,000 troops, or 10.9% of the army's strength. However, as the regional situations grew more serious, and as China grew its military capabilities this policy was reversed. By 2003, the armed force levels were 4.7% higher than they had been at the end of the Cold War. In the latest budget announcement in February 2011, the finance minister set the military budget for 2011-2012 at just over INR1.64trn (US$36.28bn), up nearly 12% on the INR1.47trn spent in 2010-2011.

Historically, India sourced much of its military hardware from the Soviet Union. However, since 1962 it has been Indian government policy to develop a local defence industry and reduce its dependence on imported equipment. India now possesses one of the largest and most sophisticated defence industries in the developing world. The defence industry is built around 39 state owned ordnance factories and eight defence-focused government owned businesses. While the sector is nominally open to private sector companies they have been mostly confined to supplying raw materials or components to the state-owned factories.

Recently though India has begun entering into joint venture (JV) projects with other countries. It might be hoped this will reduce the level of bureaucratic delay that has marked many Indian defence projects. In January 2007, a project valued at US$549mn was signed between India's Hindustan Aeronautics Limited (HAL) and Russia's United Aircraft Corporation (UAC) to design and build a multirole transport aircraft. India and Israel have agreed to jointly develop a longer range variant of the Barak short range supersonic, vertically launched air defence system. Israeli Military Industries (IMI) has signed an US$11.6mn deal for the joint manufacture of advanced tank shells, with further orders expected to follow. Italy's Fincantieri is to work closely with Cochin Shipyard in southern India on the flagship aircraft carrier project.

India is also expected to conclude negotiations at the end of this fiscal year to buy 126 combat aircraft, the country's largest ever defence order. Saab's JAS-39 Gripen is competing with Boeing's F/A-18 Super Hornet, Dassault's Rafale, Lockheed's F-16 and Russia's MiG-35 to win the fighter contract which Indian officials said can eventually go up to 200 aircraft.

India needs to manage a complex combination of internal and external situations. Internally, after 60 years of independence, India faces a new challenge. Having kept the country together through decades of famine and poverty, the government now needs to create harmony and stability in a period of rapidly increasing, but terribly uneven, prosperity. Economic inequality, in terms of both present income and also economic opportunity, lies at the heart of most of the internal unrest.

Externally, the conflict in Kashmir is ongoing and brings India into proximity with both Pakistan and China. The most dramatic risk comes from Pakistan, its rather unstable but nuclear armed neighbour. It is unfortunate that it is the very size and capability of India's conventional forces that has been a key driver behind Pakistan's nuclear programme. Convinced they could not resist India in a conventional war, Pakistan looked to nuclear arms as a force multiplier.

Economically, India is performing well. Despite our rather bearish outlook for many of the world's key economies, we expect India's economy to continue growing at its present brisk pace throughout 2011.

For more information or to purchase this report, go to:

Partial Table of Contents:

SWOT Analysis
- India Security SWOT
- India Defence Industry SWOT
- India Political SWOT
- India Economic SWOT
- India Business Environment SWOT
Global Political Outlook
- The United States
- China
- Japan And The Koreas
- Russia
- Europe
- India
- Brazil
- Turkey
- Iran
- Egypt, Saudi Arabia And Pakistan
- Terrorism
- Africa
- Space
- Competition
- Wild Card In Global Politics
- Conclusion
South East Asia Security Overview
- The Strategic Outlook For The 2010s
- South Asia In A Global Context
- Challenges And Threats To Stability And Security
- External Power Dynamics
- The Outlook For South Asia
Security Risk Ratings
- BMI's Security Ratings
- Table: Asia Pacific Regional Security Ratings
- Table: Asia Pacific State Vulnerability To Terrorism Index
- India's Security Ratings
- City Terrorism Rating
- Table: BMI's Asia City Terrorism Index
Political Overview
- Domestic Politics
- Foreign Relations
- Long-Term Political Outlook
Security Overview
- Internal Security Situation
- Religion
- Insurgency
- Assam
- Nagaland
- Maoists
- Refugees
- External Security Situation
- International Terrorism
- Border Disputes
Armed Forces And Government Expenditure
- Armed Forces
- International Deployments
- Table: India Deployments
- Joint Exercises
- Weapons Of Mass Destruction
- Table: Indian Nuclear-Capable Delivery Vehicles
Market Overview
- Arms Trade Overview
- Industry Trends And Developments
- Procurement Trends And Developments
- Competitive Landscape
Industry Forecast Scenario
- Armed Forces
- Table: India's Armed Forces, 2000-2008 ('000 personnel, unless otherwise stated)
- Table: India's Manpower Available For Military Service, 2008-2015 (aged 16-49, unless otherwise stated)
- Defence Expenditure
- Table: India's Defence Expenditure; 2008-2015
- Table: Expenditure Scenario - Changing % Of GDP, 2008-2015 (US$mn)
- Defence Trade
- Table: India's Defence Exports, 2008-2015 (US$ mn)
- Table: India's Defence Imports; 2008-2015 (US$ mn)
- Table: India's Defence Trade Balance, 2008-2015 (US$mn)

Full Table of Contents is available at:

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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