The BGA India Team, led by Managing Director Ratan Shrivastava, recently wrote an update on the increase in Indian defense exports and what that means for investors.

Context

  • New Delhi is applying its “Make in India” domestic manufacturing program to the defense industry in a bid to boost exports to Indo-Pacific markets.
  • India is expanding its military sales to countries throughout the Indo-Pacific. The country in January signed a $375 million contract with the Philippines to export BrahMos Aerospace missiles.

Significance

  • India’s increasing military exports reflect its status as a rising regional power. The country’s growing economy gives it greater industrial capacity to research and produce advanced yet affordable military equipment.
  • Indian arms exports to Southeast Asia are part of a broader “Act East” policy to bolster New Delhi’s strategic relations and role as a regional power.

Implications

  • Businesses should be optimistic about the growing opportunities to partner with Indian defense firms. India is keen to develop its domestic defense production industry and has taken steps to attract foreign investment.
  • India’s engagement with Southeast Asia extends beyond the supply of defense goods. India has emerged as a service provider in the defense sector, which has enabled a longer-term strategic partnership with several ASEAN members and a few African countries.

We will continue to keep you updated on developments in India as they occur. If you have any questions or comments, please contact BGA India Managing Director Ratan Shrivastava at ratan@bowergroupasia.com.

Best regards,

BGA India Team

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Managing Director

Ratan is a senior executive and management consulting professional who has a proven track record in government, consulting and industry across India and Southeast Asia, with a wide network across stakeholders. He has been instrumental in developing and implementing growth strategies for both the public and private sector and has led diverse teams to secure new market opportunities. Prior to joining BGA, Ratan was at KPMG India where he helped the integration of the small and medium industry clusters, with the domestic and global aerospace, defense and space supply chains. He also served as an advisor at the Federation of ... Read More