Aviation Sector Overview 

The global recovery in air travel has been mirrored in India, and this is a sector that holds immense potential.  By 2024, the domestic aviation market in India is expected to grow to $30 billion, making it the third largest globally.  According to the International Air Transport Association, India’s domestic revenue passenger kilometers rose 32.3 percent year-on-year in March 2022.  The Indian Government set a target of increasing the number of airports across the country from 140 to 220 by 2025.  There is also a plan to create 33 new domestic cargo terminals and 15 new flight schools, and there is an increased focus on unmanned aircraft systems.  Boeing estimated India requires an additional 2,500 passenger aircraft to meet this rapidly growing demand. 

India’s Vision 2040 strategy document outlines development needs for the sector, including a five-fold increase in the number of airports needed to handle over a billion passenger trips a year.  The Airports Authority of India (AAI), a nodal authority under the Ministry of Civil Aviation, is responsible for creating, upgrading, maintaining, and managing civil aviation infrastructure in India.  AAI is one of the largest airport operators in the world, owning 137 airports (24 international, 80 domestic, 23 domestic defense airfields, and 10 customs).  India currently has 450 airstrips, though only 100 are considered fully operational.  Under its asset monetization through public-private partnership model, AAI has an ambitious plan to privatize airports under its purview and bundle profitable airports with loss-making ones in the sales process. 

In 2016, the Ministry of Civil Aviation released the National Civil Aviation Policy (NCAP).  It included objectives such as promoting the rapid growth of the sector, improving the ease of doing business, advancing regional connectivity, and opening opportunities for additional players in the market to meet India’s largely untapped and growing demand.  To address the supply-demand gap in India, a key component of the NCAP is “Ude Desh ka Aam Naagrik”, an initiative that includes a Regional Connectivity Scheme to make air travel more affordable and add routes and flights for unserved and underserved airports.  Under NCAP, AAI has awarded 948 new routes across India to airline operators.  The NCAP also strives to improve code share agreements, allowing designated air carriers now to enter international and domestic codeshares with foreign carriers if the codeshares are in accordance with existing Air Service Agreement provisions.    

According to the Directorate General of Civil Aviation, in 2021, scheduled domestic airlines operated 644,000 flights carrying 71.6 million passengers compared to 478,000 flights carrying 55.6 million passengers during the same period in 2020, a growth of 28.9 percent in passenger volume.  Though domestic airlines continue to struggle due to hyper-competitive pricing, high fuel costs, and volatile currency rates, the planned launch of Akasa, a new domestic carrier that intends to compete with IndiGo and SpiceJet, suggests market optimism.  Akasa airlines plans to add 12 aircraft every year over the next five years.  The return from bankruptcy of Jet Airways, now under new ownership, is also seen as a promising sign for the industry.  The Indian government’s successful privatization of Air India also bodes well for the future of the national carrier.  Based on revenue passenger kilometers and passengers carried, IndiGo had the greatest share of the domestic market, followed by SpiceJet, Air India, and Go Air.  FDI of up to 100 percent is now allowed for civil aviation infrastructure development projects, while a foreign ownership stake greater than 49 percent in any airline still requires government approval.  

The lack of airports to meet rising demand can be explained by the frequency of construction delays, ambiguity in procurement processes, complexity of environmental reviews, and the difficulty of land acquisition.  Airports are looking for more automation, self-service, and biometric tools to alleviate capacity constraints.  Many airline owners have expressed hope for tax relief, the inclusion of jet fuel under the goods and services tax structure, and for a strong revival of the civil aviation sector.

The Indian commercial space sector is on the threshold of significant change.  India is one of only a few countries in the world with an advanced space program, and it has experienced major growth over the last several years.  In May 2020, the Indian government announced that it would allow the Indian private sector to participate in its space programs.  This was a major shift in policy, done in an effort to expand India’s share of the global market and expand development in the sector.  India’s share of the global $360 billion space market currently stands at less than three percent.  India’s space launch operations currently account for less than one percent of the global launch services market.  India’s private sector space ecosystem is fast developing, and the Indian government’s recent steps towards privatization may create opportunities for international space companies as well.  In recent years, a small number of Indian start-ups have developed innovative space systems, designed launch vehicles, and manufactured small satellites to include on future Indian launches.  As the Indian private sector gears up to play a greater role in Indian space programs, Indian industry will look towards international cooperation and partnerships to develop and upgrade their capabilities.  

Partner Agencies

The U.S. Federal Aviation Administration’s (FAA) Aircraft Certification Service and the Indian Directorate General of Civil Aviation maintain a “Bilateral Aviation Safety Agreement with Implementation Procedures for Airworthiness” designed to facilitate the exchange of aviation products between the United States and India.  The FAA and India’s civil aviation authorities continue to explore opportunities to expand bilateral cooperation.  Following protracted negotiations, the Indian Bureau of Civil Aviation Security (BCAS) granted U.S. carriers the right to perform their own ground handling services in India, in line with the U.S.-India Open Skies agreement.  India had its best performance to date in the most recent FAA aviation audit and shows a strong commitment to adhering to international aviation safety standards.

The U.S.-India Aviation Cooperation Program (ACP) is a public-private partnership between the U.S. and Indian governments, providing a forum to advance aviation cooperation and develop business opportunities for its U.S. member companies.  The ACP was established in 2007 with the support of the FAA, the Transportation Security Administration (TSA), the  USTDA, the U.S. Department of Commerce, and the U.S. Department of State.  The ACP supports the Indian civil aerospace sector by working directly with Indian aviation authorities to identify and execute projects that encourage collaboration between U.S. and Indian stakeholders in aerospace technology and to share industry best practices.    

TSA cooperates with the Ministry of Civil Aviation and BCAS through bilateral Aviation Security Working Group meetings.  TSA and BCAS share information related to risk assessments, capacity development, air marshal training, and other security issues through a bilateral Sensitive Security Information Memorandum of Agreement that was signed in 2013.

Data Sources:  Ministry of Civil Aviation, Ministry of Commerce & Industry, Directorate General of Civil Aviation, USDOC, Bureau of the Census – Foreign Trade Division.  Statistics cited for HS Code: 880000
Disclaimer:  Estimated total exports and imports are based on growth trends.

Leading Subsectors  

Maintenance, Repair, and Overhaul (MRO)

The Indian government has revised its MRO policy in an effort to increase the ease of doing business and to make India a global leader in the MRO sector.  Approximately 90 percent of India’s MRO activity occurs outside of India, predominantly in Sri Lanka, Singapore, and Malaysia.  Local capabilities are at a nascent stage but with the potential to grow quickly.  Efforts are underway to make India a regional hub for MRO services, given its advantageous geographic location between Europe and Southeast Asia and its proximity to the Middle East.  India’s growing fleet of aircraft will also demand an increase in maintenance services and MRO facilities.  According to industry experts, the segment is expected to increase by $4 billion by 2031.

Safety and Security:  Obtaining innovative aviation safety and security systems and equipment is a top priority in India, particularly with respect to India’s efforts to develop greenfield and brownfield airports across the country.  Growth in this sector is anticipated to be strong, and along with airport development itself, there is a nexus with India’s efforts to develop multi-modal logistics hubs across India.

Navigation and Air Traffic Management Systems

AAI continues to upgrade and modernize air navigation services.  With the launch of the GPS-Aided GEO-Augmented Navigation system, India became the fourth country in the world to implement satellite-based navigation systems and began utilizing satellite-based Automatic Surveillance-Broadcast services in 2019.  India’s aviation authorities retained FAA Category 1 status after the most recent inspection.

Human Resource Development

Training, skilling, and human resource development are key priorities for the Indian civil aviation sector.  The supply of skilled labor has simply not kept pace with the industry’s rapid growth, whether for pilots and air crews, ground staff, or airport management personnel.  There are opportunities for education and training service providers across the industry, and there is untapped demand for innovative training simulators.  India’s primary educational institution for the industry, the Rajiv Gandhi National Aviation University, is exploring collaboration with foreign and domestic partners.  The country’s flight primary training institution, the Indira Gandhi Rashtriya Uran Akademi, continues its efforts to improve flight and ground training of commercial pilots.  India’s National Skill Development Council has a separate entity called the Aerospace and Aviation Sector Skill Council to identify needs and explore conducive environments to develop educational curricula.  There are only 32 approved Flight Training Organizations in India, which struggle to supply trained pilots and meet the demand for 1,000-1,500 pilots per year. 

Helicopters

To encourage demand for and usage of helicopters in the civil aviation sector, the Indian government recently issued its “Policy for Promotion of Helicopter Operations,” which invites opportunities to increase fleet size and usage beyond the traditional short-haul travel, tourism, disaster management, and emergency response sectors.  India has approximately 90 helicopter operators, including non-scheduled operators, private companies, state governments, and public sector utility companies, comprising a combined fleet of 280 turbine helicopters – a fraction of the 14,000 helicopters in service in the United States.  With 42 helicopters in its fleet (comprising Dauphin and Bell platforms), Pawan Hans Limited is the largest single operator nationwide.  In May 2022, the Indian government decided to sell its 51 percent stake in Pawan Hans as part of its effort to privatize its aviation portfolio, and transferred management control to Star9 Mobility Pvt. Ltd.  As this segment grows, there are burgeoning opportunities in fleet sales, MRO, and helicopter pilot training services and facilities.

Unmanned Aircraft Systems (UAS)

In February 2022, the Directorate General of Foreign Trade banned the importation of foreign drones.  However, an exemption is in place for imported drones for research and development (R&D), defense, and security purposes.  These will nonetheless require specific approvals in order to be imported into the country.  The importation of drone components will not require approvals.  Imports are also allowed in the form of completely built-up, completely knocked down or semi knocked down units for R&D purposes by entities, such as the central or state government, government-recognized R&D institutions, and indigenous manufacturers.  Last year, the Indian government released its “Drone Rules 2021,” with a vision to make India a global hub for R&D, testing, manufacturing, and operations.  In addition, the government offers benefits to encourage local production for drones and its components through a range of incentive schemes.  The online Digital Sky Platform system was updated for better analysis of data related to registering drone pilots, devices, and service providers.  Health experts in India are testing UAS as a delivery platform for vaccines to isolated communities to help combat the COVID-19 pandemic.  Experts estimate India’s UAS market to be valued at $1.8 billion by 2026.  Leading local players in the UAS sector include Adani Defense and Aerospace, Ida Forge, Asteria, Garuda, Zen Technologies, and Aerial IQ.

General and Business Aviation

Similar to its helicopter fleet, India has few small fixed-winged aircraft for civil and commercial use.  Industry experts report that international private and business jet operations have seen an increase in demand during the pandemic.  This may be attributable to a greater need for health precautions, including social distancing.  According to experts, the segment may experience an increase in the number of charter routes from domestic airlines and an increased demand for aircraft. 

Opportunities  

Leading multinational aircraft original equipment manufacturers (OEMs), including Boeing and Airbus, consider India an important market among G20 nations because of its high demand for aircraft, parts, and equipment, strategic geographic location, engineering expertise, and competitive labor costs.  Foreign OEMs are partnering with Indian suppliers and small- and medium-sized enterprises to fulfill needs for Tier-1 suppliers and to set up an aerospace industry ecosystem within the country.  There are several high-growth areas that create opportunities for U.S. exporters, including airport privatization, greenfield and brownfield airport infrastructure development and related technology needs, the expansion of MRO facilities, and pilot and staff training facilities.  Prior to the pandemic, demand for airlines, aircraft, and airport facilities outstripped supply.  The demographics and sheer scale of the market mean that India cannot be ignored by U.S. suppliers.  However, with limited budget allocation by the government, U.S. companies should monitor the sector’s path to recovery.  U.S. exporters are encouraged to reach out to the U.S. Commercial Service for a better understanding of this rapidly evolving sector. 

As India builds greenfield and brownfield airports, there will be opportunities for U.S. companies in airport planning and development, energy efficient and zero-carbon emissions airports, safety and security products (including cargo and passenger scanners), and innovative technologies like touchless airport and passenger ticketing and baggage management systems.  AAI plans to set up 21 new airports across India and is expanding and upgrading many existing airports.  Some expansion projects worth noting include Delhi’s Indira Gandhi International Airport, which is currently undergoing construction to expand its airside and terminal cargo and passenger handling capacities.  Delhi’s second airport, Noida International Airport, is currently under development and will boast five runways and MRO facilities once completed, making it India’s largest airport.  Tata Projects has been shortlisted (yet to be awarded) to construct the terminal, runway, and both airside and landside facilities.  The Uttar Pradesh government has also announced the Maryada Purushottam Shriram International Airport project in Ayodhya.  Authorities recently signed the lease with AAI to proceed with international projects in the city, which aims to boost tourism and generate employment.  The Adani Group is set to complete the first phase of the Navi Mumbai International Airport project by December 2024. 

The MRO sector offers immense opportunities for U.S exporters in engine spare parts and components, workshop tools, testing equipment, inspection equipment, auxiliary power units, and maintenance training services.  With the projected increase in fleet size over the next few years, engine maintenance is likely to be the most lucrative segment, and demand is projected to grow rapidly.  Both engines and airframes constitute 60-70 percent of the MRO sector by value.  In recent years, the government has taken many steps to provide greater support to the sector.  Among these steps are a reduction in goods and services tax from 18 percent to 5 percent for the MRO sector; a focus on developing high-precision manufacturing capabilities; and creation of employment opportunities for skilled manpower.  The Indian government also intends to lease additional land for MRO activities across India.  These efforts are targeted at making India a leading global MRO hub.  Eight airports across India have been identified to provide MRO services for aircraft and helicopters, including:  Begumpet (Telangana), Bhopal (Madhya Pradesh), Chennai (Tamil Nadu), Chandigarh, Delhi, Juhu (Maharashtra), Kolkata (West Bengal), and Tirupati (Andhra Pradesh).  Major Indian MRO players, including Air India Engineering Services Limited, GMR, and Air Works India, are taking steps to partner with global companies as they move toward upgrading maintenance capabilities with state-of-the-art equipment. 

For more information, please contact U.S. Commercial Service Industry Specialist Shamli Menon.

Defense Sector Overview 

According to the Stockholm International Peace Research Institute, the five largest military spenders in 2021 were the United States, China, India ($76.6 billion), the United Kingdom, and Russia, together accounting for 62 percent of global military expenditures.  India has the third largest armed forces in the world and plans to spend billions of dollars on defense articles over the next several years.  India’s resolve to drastically reduce its reliance on imports, referred to as “Aatmanirbharta” (self-reliance), is perhaps the biggest strategic development related to the defense sector, with the goal of achieving domestic manufacturing turnover of $25 billion in the next five years.  As part of its indigenization drive, India’s Ministry of Defense has to date added 310 items (weapons and platforms) on a restricted import list.  The list is likely to expand in the future.  The government maintains that the shift is aimed “to create an environment where public, private, and foreign entities can work together and help India become one of the leading countries in defense manufacturing.”  According to the Defense Acquisition Procedure (DAP) 2020, India intends to procure all restricted items from indigenous sources.  These import restrictions will likely impact current deals underway between U.S. suppliers and Indian buyers.

The Indian government’s initiative to expand indigenous defense manufacturing demonstrates the country’s determination to become more self-reliant in the sector.  However, there will remain demand for innovative, next-generation technologies in a wide range of subsectors.  It is worth noting that certain types of defense equipment not manufactured in India are exempted from basic customs duties.  The Indian government’s approach to the development of indigenous manufacturing is outlined in the Defense Production and Export Promotion Policy 2020.  This policy features key components of the Defense Production Policy of 2018, which promotes public and private sector production and encourages medium- and small-enterprise participation in defense production.  Two Defense Industrial Corridors in the Indian states of Uttar Pradesh and Tamil Nadu were announced in the 2018-2019 budget, which includes incentives to attract manufacturers and suppliers.  Foreign manufacturers as well as local ones, notably Tata and Mahindra, and some public sector units plan to invest in these corridors.

Though efforts to develop India’s indigenous defense sector are moving forward, the country’s defense manufacturing remains significantly underdeveloped, making India an attractive market for foreign technological collaboration.  Over the past 10 years, U.S. companies have had increasing success in the Indian defense market, and India has procured over $18 billion worth of defense equipment from the United States.  Examples of recent procurements include Boeing Apache and Chinook helicopters, P-8I maritime surveillance aircraft, C-17 heavy transport aircraft, Lockheed Martin C-130 aircraft, Sikorsky MH-60R multi-mission helicopters, and BAE M-777 howitzers.  India also sources subsystems, components, and OEM parts from U.S. suppliers.  Major U.S. defense companies, many of which have expanded manufacturing operations in India, are on the lookout for second- and third-tier suppliers.  

India’s total 2022 defense budget is $70 billion.  Sixty-eight percent of the budgeted defense capital expenditure is earmarked for procurement of domestically manufactured weapons and military platforms with the goal of strengthening the indigenous arms industry, an increase from 58 percent last year.  Twenty-five percent of the defense research and development budget is reserved for start-ups and the private sector, including for the design and development of military equipment and platforms with India’s Defense Research Development Organization through a joint-venture or special purpose vehicle structure.  Defense analysts see the government’s efforts to build an indigenous defense ecosystem as a step towards India’s goal of becoming a net security provider in the region.  To date, the Indian government has issued approximately 500 Defense Industrial Licenses to 300 companies. 

The Indian defense sector has traditionally been dominated by state-owned enterprises, known as Defense Public Sector Undertakings (DPSUs) and ordnance factories that report to the Ordnance Factory Board.  These DPSUs and ordnance factories provide roughly 90 percent of total domestic defense manufacturing output, according to industry sources.  In 2021, the government dissolved the Ordnance Factory Board and created seven DPSUs to manufacture according to the specific needs of the Indian armed forces.  These new entities may potentially collaborate with the private sector for the supply of advanced military technologies.

The new DPSUs include Munition India Limited, Pune (ammunition and explosives); Armored Vehicles Nigam Limited, Chennai (vehicles); Advanced Weapons and Equipment India Limited, Kanpur (weapons and equipment); Troop Comforts Limited, Kanpur (clothing); Yantra India Limited, Mumbai (ancillary); India Optel Limited, Dehradun (opto-electronics); and Gliders India Limited, Kanpur (parachute group).  While the Indian DPSUs and private sector OEMs produce combat aircraft, naval vessels, heavy trucks, and other military equipment, they invest little in R&D.  As a result, India’s defense industrial base and technologies remain underdeveloped, and Indian industry has had difficulty meeting the demand for modern and next-generation equipment. Consequently, opportunities remain for international suppliers to provide innovative technology solutions and platforms. 

In 2016-2017, the Ministry of Defense began efforts to institutionalize, streamline, and simplify procurement procedures.  These procedures were revised in the DAP 2020, an attempt by the Ministry to refine capital procurement procedures with a focus on self-reliance.  To attract FDI from foreign OEMs, DAP 2020 increased the FDI limit to 74 percent and encourages foreign manufacturers to establish operations in the Defense Industrial Corridors in Uttar Pradesh and Tamil Nadu.  DAP 2020 includes five procurement categories: (1) Buy; (2) Buy and Make; (3) Make; (4) Leasing; (5) Design and Development/Innovation.  These categories include subcategories listing details on indigenous content requirements.  The Strategic Partnership Model can be pursued separately, in sequence, or in tandem, with any of these five categories.  Candidates in this category are selected early in the planning process and are given priority over candidates from other categories.  

The U.S.-India defense trade relationship has been on a positive trajectory following the U.S. designation of India as a Major Defense Partner in 2016.  In 2018, the U.S. Department of Commerce announced Tier 1 Strategic Trade Authorization status for India, enabling a license exception for many U.S. exports to India subject to the Export Administration Regulations.  The 2018 Communication Compatibility and Security Agreement between the United States and India facilitates interoperability and enhanced information and intelligence sharing between the countries.  The Indian and U.S. armed forces continue to expand their schedule of bilateral and joint military exercises, further strengthening the bilateral partnership.   

The U.S. Embassy’s Office of Defense Cooperation (ODC), in close cooperation with the U.S. Commercial Service (USCS), assists with defense advocacy cases on behalf of U.S. suppliers bidding on Indian defense procurements and that meet the requisite 51 percent U.S. export content requirement.  ODC is the lead agency for Foreign Military Sales support while USCS leads on Direct Commercial Sales.  Both ODC and USCS coordinate with the U.S. Department of Commerce’s Advocacy Center in Washington, D.C. on these efforts.  It is worth noting that the Indian government tendering process offers little flexibility in terms and conditions and product specifications, often awarding tenders to companies with lowest price quotes. 

Leading Subsectors  

Land Systems

The Indian Army recently issued requests for information for a range of products including 105 mm/37 caliber mounted gun systems; high altitude tents as part of extreme cold-weather clothing and equipment; surveillance quadcopters; smoke grenades for tanks; and protected mobility vehicles for high altitude deployment.  The Combat Engineers Directorate has issued a request for information for approximately 50 armored earth movers that weigh 45 T or less.  The army also plans to procure Level-4 bulletproof jackets.

Air Systems and Air Defense

The Indian Air Force intends to procure approximately 250 Long Range Satellite Navigation System Guided Missiles.  There is demand under the “Make in India” initiative for indigenous coproduction of aircraft. The Indian Ministry of Defense also plans to expand and further develop India’s rotary wing and UAS fleets.  

Maritime Systems

The budgeted capital outlay for maritime systems increased by 43 percent compared to last year.  Planned purchases include submarines, warships, aircraft, and aeroengines for the Indian Navy.  With a coastline of more than 7,800 km, the Indian Navy faces a significant challenge securing the country’s maritime interests.  

MRO

With aging platforms and equipment used by the Indian armed forces, as well as planned procurements of new advanced systems and platforms, the demand for robust MRO capabilities located in India is projected to increase.  The leading Indian MRO companies and DPSUs are exploring opportunities to collaborate with international companies to acquire state-of-the-art technologies to maintain the latest platforms.  As an example, Lockheed Martin and Marshall Aerospace recently secured a contract with the Indian Air Force to carry out 12-year maintenance inspections for the C-130J Super Hercules, a four-engine turboprop military transport aircraft.

Defense Electronics:  The Indian defense electronics sector will grow to an estimated $70 billion in the next 15 years, according to Indian Infrastructure magazine.   

Opportunities  

India enjoys a unique status as a Major Defense Partner of the United States, opening opportunities to procure sensitive defense technologies.  As bilateral ties between the United States and India strengthen, defense cooperation is likely to increase in parallel.  Defense is one of the most promising sectors for U.S. exports to India thanks to the United States’ technological edge and India’s security needs.  There is also a shared U.S.-India interest in issues such as counter-terrorism cooperation, maritime security, and weapons proliferation monitoring, making India an important partner in the Indo-Pacific region. 

This year the government has allotted 25 percent of its defense R&D budget for collaboration between private industry, start-ups, and academia with the state-run Defense Research Development Organization.  This will be done through joint ventures or special purpose vehicles. In addition, India’s focus on artificial intelligence, geospatial systems, semiconductors, and maritime issues creates additional opportunities for private sector collaboration.

India is formulating the 10-year Integrated Capability Development Plan, which would be the basis for future defense procurement.  The five-year acquisition plan and two-year roll-on acquisition plan will be formulated based on this plan.  According to Indian government sources, the Ministry of Defense has initiated the process of obtaining the Cabinet Committee of Security’s approval for the design and development of the Advanced Medium Combat Aircraft.  The government has also approved a budget of $3.8 billion to modernize the police force from 2022 to 2026.

Indian companies are partnering with foreign firms to present jointly developed capabilities in line with “Make in India” requirements.  The Defense Procurement Board has many such deals, all indigenous, on its agenda, and according to industry experts, these projects include 6,400 guided extended range rockets and air defense guns, an additional 100 K9 howitzers, 100 flying helmets for the Mirage and Tejas fleets, and the development of India’s largest naval base in Karwar, Karnataka.  Indian companies look forward to collaborating with foreign OEMs, initially targeting imports but with plans to indigenize manufacturing downstream.

Firms such as Tata and Mahindra have already established joint ventures with U.S. defense firms.  Lockheed Martin and Tata Advanced Systems announced an agreement in 2018 to produce F-16 wings in India for export, and Lockheed Martin is working with Tata as a strategic partner to offer the F-21 fighter aircraft to the Indian Air Force.  Tata Advanced Systems and Airbus are in talks to manufacture C-295 aircraft at the Dholera special investment region in Gujarat.  In 2020, Lockheed signed a Memorandum of Understanding with Bharat Electronics Limited to explore industrial opportunities linked to the F-21.  In 2022, Boeing announced a partnership with Motherson to manufacture and supply aftermarket molded polymer parts for commercial airplane interiors.  Major Indian OEMs such as Reliance Group, Adani Group, Larsen & Toubro, and Kalyani Group, as well as a range of tier-two companies, are seeking U.S. suppliers and partners.  

While the Indian defense market offers substantial potential, it is a challenging market that requires patience and persistence.  Indian buyers are price sensitive and likely to negotiate stringently.  Many procurement decisions are driven by lowest cost bids.  Defense procurement is tightly regulated, timelines are often long, and transparency is limited.  Substantial payment delays are common.  It is strongly advised that U.S. companies find reliable partners in India to assist with mitigating these issues and facilitating deals, particularly in the case of government procurements.   

For more information, please contact U.S. Commercial Service Industry Specialist Shamli Menon.