India can reflect on a decade of significant political, economic and demographic transformation which today sees it stand as the world’s fifth largest economy and the second most populated nation. As an emerging market, it could be an attractive destination for European companies confronted by new challenges in their domestic markets. This is the case in the aerospace and defence (A&D) sector.
While the automotive sector has already made its move to India, European A&D companies seem to be lagging behind in terms of local industrial presence, despite the significant business opportunities in the Indian defence and civil aviation sectors. This delay could be due to restrictions imposed by the specific regulations governing the A&D sector. It could also reflect some constraints faced by European SMEs when entering this emerging market; the perception of those constraints and therefore the motivation to make a move often depends on the size of the company wishing to invest in India (Prime, Tier 1 or Tier 2).
Our France Aerospace and Defence Leader Guillaume Rochard and India Subject Matter Expert Dhiraj Mathur have recently written an article entitled "India: a new eldorado for the European aerospace and defence sector?" (which first appeared in leading French A&D journal "Défense nationale et sécurité collective" in April 2008) which explores some of these trends in further detail.
The article investigates why A&D companies choose to do business in India, the characteristics of the Indian A&D sector and the co-operation to date with A&D Indian companies.
Please click on the image opposite to download the paper.