An analysis of the opportunities and hurdles in the A&D sector in India today

1. G Raj Narayan
Managing Director
Radel Group
DEFENCE MANUFACTURING
OPPORTUNITIES AND CHALLENGES
CONTENT PREPARED BY G RAJ NARAYAN, 2015. NOT TO BE REPRODUCED.

2. Defence Procurement Budget
40 billion USD
Indigenous suppliers
8 Billion USD
OPPORTUNITY
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3. Real Lifecycle Costs
of a defence platform
Indigenous content
Structures,labour
Imported
content
2 Billion
USD
6 Billion USD
Onboard Systems
Maintenance,
Overhaul, Repair
Indigenous Suppliers
Structures
CONTENT PREPARED BY G RAJ NARAYAN, 2015. NOT TO BE REPRODUCED.

4. Security and Self Reliance
Foreign Exchange
INDIGENISATION
CONTENT PREPARED BY G RAJ NARAYAN, 2015. NOT TO BE REPRODUCED.
Benefits

5. Will Never be Provided
Most Technology Available Within India
TRANSFER of TECHNOLOGY
Opportunity for Technologically
Competent MSMEs
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6. CHALLENGES
• Lack of ecosystem
• High levels of Quality, reliability, traceability, documentation
• Domain expertise
• Monetary and time costs of specialised test procedures
• Small volumes
• Delays caused by red-tape in user agencies
• Long Gestation periods
• Funding for R&D and design
CONTENT PREPARED BY G RAJ NARAYAN, 2015. NOT TO BE REPRODUCED.

7. SOLUTIONS
• Inclusive tier system
• 20:80 Integrator: Supply chain
• MSMEs critical component of supply chain
• Sharing of knowledge and expertise in larger interest
• Exclusive funding mechanisms for defence manufacturing
CONTENT PREPARED BY G RAJ NARAYAN, 2015. NOT TO BE REPRODUCED.