India will see major investments in several industries which include aircraft maintenance, repair and overhaul (MRO), avionics and radars, software and engineering design services, and electronic warfare systems as foreign companies eye a share in the billions of dollars worth domestic defense market, consultancy and advisory services firm KPMG said in a report.
The world’s third-largest military spender and the second-largest importer of defense equipment, India, currently imports 70% of its arms. Though, there hasn’t been any sizable M&A (mergers and acquisitions) in the defense space, more green field ventures by foreign multinationals with local partners are expected in future with the government recently increasing automatic FDI (foreign direct investment) in this space to 74% from existing 49%.
