Overview

In recent years, the Indian safety and security industry has experienced steady growth, with some segments estimated to grow between 10 to 15 percent annually.  Population growth, urbanization, industrialization, and expansion of infrastructure and mass transportation systems are driving expectations for greater safety and security measures, particularly linked to critical national infrastructure projects.  The security systems market in India is broadly classified into the following subsectors: cybersecurity; electronic security; fire safety, detection, and prevention; road safety; private and industrial security; and personal protective apparel and equipment.  The industry is highly fragmented and consists of local manufacturers, system integrators, sub-contractors, regulatory and certification agencies, distributors, consultants, and service providers.

Total market size = total local production + imports – exports

Data Source:  Global Trade Atlas (GTA); USDOC Statistics

Growth in India’s safety and security market is largely due to the ever-increasing requirements for safety, coupled with a boom in technological adaptation across all segments of society.  While the market is price sensitive, increasing awareness of quality, reliability, and timely after-sales service has led to willingness from some customer segments to pay a premium for innovative and technologically advanced products.  This presents a market opportunity for U.S. manufacturers, suppliers, and solutions providers.

The Indian government has steadily increased its budget allocation for this industry, which has grown at a compound annual growth rate of 12 percent in the last five years.  This growth outpaces India’s defense budget, which has experienced a growth rate of 5 percent per year.  During the same five-year period, the Ministry of Home Affairs’ capital expenditure on policing has also grown at a rate of 5 percent.  This reflects the importance that the Indian government places on the safety and security sector, as well as the government’s increasing focus towards modernizing the security equipment in the country.

In recent years, the Indian government has initiated a wide range of vital infrastructure projects, including new airports, seaports, highway development projects, urban rail systems, and the continued expansion of smart city technologies across the country.  These developments, coupled with the rise in the use of Internet of Things, advanced manufacturing systems, and smart technologies across industries are primary drivers for demand in the safety and security sector.

End users of safety and security products and services in India include airports, mass transportation system operators, government agencies, law enforcement and intelligence agencies, military and paramilitary forces, emergency and disaster management agencies, private security agencies, manufacturing operations, and commercial and non-commercial enterprises.

Policy and Regulatory Environment

The policies driving safety and security in India are unique to each subsector outlined below.

Cybersecurity

The National Data Governance Framework Policy, the National Cyber Security Strategy, and the National E-Commerce Policy are all currently in draft form.  India is consulting with stakeholders to amend its 2019 Personal Data Protection Bill.  The 2019 bill, which was reviewed by a Joint Committee of Parliament, submitted its final recommendations and a revised draft in November 2021.  In June 2021, the Bureau of Indian Standards published India’s data privacy standards. 

Homeland Security

The Indian government has introduced policies and initiatives to promote “self-reliance” across a range of sectors.  For example, the Defense Procurement Policy for indigenization of components and spares used in defense platforms aims to create an ecosystem to indigenize imported components, including alloys and special materials, as well as subassemblies for defense equipment manufactured in India.  Increased purchases of indigenous defense products by the Indian armed forces under the self-reliance policy threatens to reduce opportunities for foreign suppliers interested in bidding on Indian government tenders.

Industrial Security

The Bureau of Indian Standards has developed Occupational Health and Safety standards for workplace safety, but there are no uniform guidelines currently in place.  Each state maintains different guidelines, which can make navigating these regulations complicated.

Fire and Life Safety

The National Building Code of India, published by the Bureau of Indian Standards, provides detailed guidelines for construction, maintenance, and fire safety of structures.  The office has issued mandatory guidelines and advisories to state governments to incorporate recommendations of the National Building Code into state-level building bylaws. These guidelines vary from state to state.

Road Safety: The Indian government’s National Road Safety Policy outlines initiatives taken by the government at to improve road safety activities across the country, including application of Intelligent Transportation Systems under the national framework to establish a safe and efficient Indian transportation network.  However, the process to acquire land for developing national highways poses serious challenges related to geographic specifications and landowner compensation.

Opportunities

Security and Surveillance:  With the successful deployment of surveillance and smart city projects in several Indian cities, adoption of video surveillance systems is expected to increase.  Emerging technologies in video analytics, biometrics, facial recognition, and CCTV systems are becoming equally important for city surveillance monitoring and analysis, and these requirements provide opportunities for U.S. suppliers.

Airport Security

India’s civil aviation market, the third largest in the world by passenger numbers after China and the United States, is expected to continue its rapid pre-pandemic growth rates.  By 2035, India is expected to need an additional 2,500 passenger aircraft.  India has a 20-year roadmap to develop civil aviation and envisions a five-fold increase in airports in order to handle over one billion trips a year.  The BCAS is the regulatory authority for civil aviation security in India.  Airport development projects and the scaling of the airline industry present significant opportunities for U.S. safety and security companies with technologies designed for these sectors.

Homeland Security and Policing

Security and border protection continue to be a very high priority for the government of India.  The Indian government and various state governments are working toward the modernization and upgrade of police forces across the country.  To improve internal security and equip law enforcement agencies, there is a need for sensors, scanners and detection equipment, protective gear, armor, and night vision devices.  The Land Port Authority of India is in the process of an ambitious review of International Check Points at border crossings across India, with plans to upgrade existing International Check Points and develop new installations over the next decade. 

Infrastructure

Several Indian states are planning projects to develop power, infrastructure, roads and highways, airports, high-speed transportation networks, special economic regions, safe and smart cities, and national emergency response systems.  To achieve the target of a $5 trillion economy, the Indian government has plans to invest approximately $30 billion for smart city initiatives.  These projects are expected to provide opportunities for U.S. safety and security companies. There is a vital need for hardware, including surveillance and safety equipment, communication devices, displays and video surveillance, access control systems, and detectors and sensors that incorporate Internet-of-Things technologies, power backup systems, and traffic management systems.

Fire Safety:  High rise buildings and congested areas due to rapid urbanization across India are posing a major challenge for fire-fighting personnel.  To minimize fire hazards, the Indian government is focused on introducing smart city technologies across the country, which will increase demand for advanced and innovative fire safety products and solutions as well.  The Bureau of Indian Standards has formulated more than 150 standards for firefighting equipment and systems.  To understand and adopt relevant industry standards, U.S. companies are encouraged to contact the Bureau of Indian Standards, which can be facilitated by the U.S. Commercial Service.  

To learn more about opportunities in this sector, contact Commercial Specialist Mala Venkat.