India is in an era of unprecedented military modernization.
We have the third largest armed force in the world with an annual budget of about USD 38 billion and 40% of this is used for capital acquisition. In the next 7-8 years, we would be investing more than USD 130 billion in modernization of our armed forces.
The Indian defence sector is at the cusp of an inflexion point wherein the future growth will be propelled by indigenous manufacturing both for domestic & global clients. The sector will witness strong growth over the next decade due to its current size, longevity, and competitive advantages. As per FICCI-Centrum report the market opportunity for Indian companies (PSU & Private) will grow 7 times from USD 6 billion in the year 2014 to USD 41 billion by 2022.
India has the fourth largest rail freight carrier in the world and has the largest passenger carrier. Mass Rapid Transit Systems (MRTS) projects are being built across the country. Major developments in this sector cover · Components manufacturing · Transportation projects · Railway lines to and from coal mines and ports · Projects relating to electrification, high-speed tracks and suburban corridors · Power generation and energy-saving projects · Setting up of wagon, coaches and locomotive units · Network expansion etc.
Civil and military aviation are undergoing major transformation. Major modernization initiatives in the Indian Armed Forces and growth in commercial aerospace sector has fuelled the growth of Indian aerospace industry. Futuristic technologies in aviation such as increased use of composites, modern engine technology, all weather capabilities and so on are being adopted, Government policies and support are providing the necessary impetus to the industry that is poised to become a global player with export potential.
The total spending in the next 5 years is expected to be between USD 25 billion for commercial aircrafts and USD 100 billion as defence expenditure. The total offset opportunity for the aerospace sector is valued to be at least USD 10-15 billion.
ROADS AND HIGHWAYS
The Indian road network, comprising of National Highways, Expressways, State Highways, Major District Roads, Other District Roads and Village Roads, is globally the 2nd largest spanning 5.5 million kilometres.
Development of Roads and Highways is one of the priority areas for the government and an ambitious target has been set to increase the length of national highways to 200,000 km. The government aims to build at least 90,000 km of highway network by the year 2019.
The seven phased NHDP is being implemented by the National Highways Authority of India (NHAI) with a total estimated expenditure of USD 92 billion. As per the largest highway development project in the country, more than 49,260 km of the roads are being upgraded since 2000, to match international standards.
The Government of India is working to develop inland waterways as an alternative mode of transport in the country, which is a lucrative cleaner way. Hon’ble Prime Minister Shri Narendra Modi had said revival of inland waterways in India is a new step towards economic development as it would ease traffic pressure on roads and help cut logistic cost.
India has the fifth largest power generation portfolio in the world and its current renewable energy contribution stands at 44.812 GW which includes fourth largest installed capacity of wind power, third largest installed capacity of concentrated solar power (CSP) and renewable energy contributes 14.7% of the total installed capacity in the country as on July 2016. The Indian Government has an ambitious target of 175 GW of renewable power by 2022 which will includes 100 GW of solar power, 60 GW of wind power, 10 GW of biomass power and 5 GW of small hydro power.