GDP Growth slowing, Fiscal Deficit, Trade account issues can all be taken very well by the one Mega sector of the Indian Economy.This sector is Defense. Sector budget currently is around 200,000Cr and really becomes important where trade deficit because of import sensitivity is very crucial.This is a sector which is also purely expenditure driven with indirect benefits happening to the other sectors if local manufacturing can be triggered by the Global FDI.India needs newer technology in this strategic sector,and the limit of 26% is a big drag on it for Global players to come in.
Most of the leading Consulting Companies and Investment Banks are readying their Pitch Books to present all possible Indian and International investors for really leveraging this through FDI driven local manufacturing and technology assimilation.Because of larger macro picture,there is possibility that this time in FY14 we will see the cap moving to 49% if not higher.The implications to our manufacturing jobs,the sector and the GDP can be tremendous if long term foreign investment moves to India.Cascading effect to the T&M equipment sales and growth will be very significant.Since we are contemplating large capex and followon offsetting, software,services and support T&M equipment to boot.
Since the triggers of all these are current account deficit,import sensitive purchase and defense purchase policy related processes, the impact on jobs can be also positive for local industry.It is one sector where the immediate gains can be had as for the next five to ten years the Defense Requirement is expected to grow and the geo-political requirement expects India not to let up.I think after a gap of almost 40 years we should see big ticket purchases happening here for Electronic and so the derivative T&M equipment as well.
Most of the leading Consulting Companies and Investment Banks are readying their Pitch Books to present all possible Indian and International investors for really leveraging this through FDI driven local manufacturing and technology assimilation.Because of larger macro picture,there is possibility that this time in FY14 we will see the cap moving to 49% if not higher.The implications to our manufacturing jobs,the sector and the GDP can be tremendous if long term foreign investment moves to India.Cascading effect to the T&M equipment sales and growth will be very significant.Since we are contemplating large capex and followon offsetting, software,services and support T&M equipment to boot.
Since the triggers of all these are current account deficit,import sensitive purchase and defense purchase policy related processes, the impact on jobs can be also positive for local industry.It is one sector where the immediate gains can be had as for the next five to ten years the Defense Requirement is expected to grow and the geo-political requirement expects India not to let up.I think after a gap of almost 40 years we should see big ticket purchases happening here for Electronic and so the derivative T&M equipment as well.
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