The aerospace and defence electronics sector is all set to achieve critical mass and grab a larger slice of India’s growing defence budget. However, fast track clearances, increased R&D expenditure, stronger public-private partnerships and higher user acceptance rates must also happen for the industry to reach its real potential, argues RAKESH KRISHNAN SIMHA
India is the world’s seventh largest aerospace and defence market. As the sector – fuelled by rising defence budgets – registers unprecedented growth, electronics have emerged as an area of strategic and lucrative importance. A joint report by the India Electronics and Semiconductor Association (IESA), the National Association of Software and Services Companies (Nasscom) and consulting firm Roland Berger projects the aerospace and defence electronics market in India at $72 billion by the middle of the next decade.
As much as $54 billion of the projected market will come from spending on standalone platforms. Another $18 billion will be generated from projects which are traditionally called system-of-systemprojects like the Indian Army's Project Tactical Communication System and Battlefield Management System, says the report titled ‘India Defence Electronics and System Design Policy – Policy Recommendations 2016- 2030’. Plus, there could be additional spending as more defence acquisition programmes are announced.
With electronics being at the heart of every manufactured product, a huge defence portfolio is emerging. The category of aerospace and defence electronics – also known as strategic electronics – includes satellite-based communication systems; navigation and surveillance systems; computing networks; radars; nano devices; sonars; underwater electronic systems; secured switches; routers; avionics; high power lasers; and transmission systems (on optical fibre as well as microwave). Plus, it comprises more robust military versions of products and components used in the civilian electronics sector.
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