A Suite of advanced defense electronics developed by L&T for LCA TEJAS

India’s defence electronics business will add $72-billion market opportunities within the next 10-year period, and the government has decided to form a task force to come up with new policy initiatives.

In an interaction with DH, India Electronics and Semiconductor Association (IESA) President M N Vidyashankar said the organisation has presented a report before Defence Minister Manohar Parrikar, last Monday in New Delhi.

“IESA presented the report before the defence minister on the opportunities in defence electronics, both platforms and systems, and quantified it at $72 billion. We gave him the smallest details on sectors to understand how the IESA reached this volume. The Defence Ministry will soon appoint a task force to look at tapping the low hanging fruits in this business segment,” said Vidyashankar.

The IESA president also said the meeting had the participation of the Defence Ministry Secretary, the Additional Secretary of DeitY, the Joint Secretary of DeitY, Directors of DeitY, and all service chiefs. If the low hanging business opportunities are capitalised soon, Vidyashankar said India will get many marketing and manufacturing opportunities in this sector.

“A few things can be done immediately to make this happen. The task force will identify these areas and monitor their implementation. While India’s information technology industry generated a total of $150 billion revenue for the past 30 years, defence electronics is giving us $72 billion within a decade,” he said.

He said the IESA report has used the heat matrix to identify the core competencies of Indian companies in the defence electronics.

“The report has brought out a mapping, which elaborates on the current capability of the private sector. It also explains what all capabilities will be achieved within the next two years, five years and 10 years. The report also elaborates on what all capabilities the private sector can achieve in platforms, systems and subsystems with foreign partnership and joint ventures,” he said.

Vidyashankar said India has 700 companies working in this area and once they tap the $72 billion opportunities, it will cross 2,000 companies. “We are eminently placed in the design aspect of defence electronic systems, and now it is important to convert this capability into a very efficient ecosystem for manufacturing,” he said.

Vidyashankar said that DEFTRONICS 2016, the third edition of the annual aerospace, defence & internal security event to be held in Bengaluru on August 4 and 5, will be organised in association with Nasscom.

“This year’s theme is ‘Building India’s Strategic Electronics Ecosystem’ for greater self-reliance and global relevance – defence, aerospace and internal security sectors,” Vidyashankar said.