The report suggests critical success factors based on analysis of the best global practices in the aerospace and defence industry. India’saerospace sector has emerged as the fastest-growing one in the world. The report goes on to suggest that the nascent industry has now a foothold to catapult into becoming a leading aerospace and defence hub.

The CII-KPMG study further says that indigenization of the industry and acquiring of advanced technologies will facilitate lowering of dependence on imports. Issues of supply chain integration, technological inferiority and funding are some of the needs to be addressed.

The CII-KPMG report was released by the Indian Minister of State for Defence, MM Pallam Raju at the ongoing 8th Aero India-2011 show in Bengaluru.

The Indian Defence Minister, AK Antony in his inaugural speech at Aero India-2011 had said  India aerospace industry has emerged as one of the fasted growing in the world and India was slated to become the hub for global aerospace industry. He said that the defence expenditure, currently at 2.5% of GDP, will increase over the next two decades. The CII-KPMG report vindicates India as one of the biggest markets for aerospace and defence.

KPMG Chief for India operation, Richard Rekhy says the Defence Procurement Policy (DPP) 2011 is a widely accepted, well planned document, reflecting the government’s commitment to forging international partnerships through expansion of offset policy.