BusinessU.S. firms looking to tap India's homeland security market
Following President Obama’s state visit to India last November, trade between the two nations is set to grow rapidly and U.S. homeland security firms are eyeing India’s expanding markets; in the next three years, India is projected to spend more than $10 billion on homeland security technology products and services for border protection, surveillance, intelligence, marine security, and other critical security infrastructure needs; India’s civil aviation market is expected to become one of the top five aviation markets in the next five years and will likely need passenger screening technology, capabilities, and services; in the next fifteen years more than 500 million people — 50 percent of India’s population — will become a part of the country’s middle class causing airline passenger volume to skyrocket; trade between the United States and India is expected to exceed $50 billion for the first time this year
India has increased security investment since Mumbai // Source: wsj.com
Following President Obama’s state visit to India last November, trade between the two nations is set to grow rapidly and U.S. homeland security firms are eyeing India’s expanding markets.
According to the Indian Express, the U.S. India Business Council (USIBC) projects that in the next three years alone, India will procure more than $10 billion in homeland security “technology products, solutions, and services for border protection, marine security, counter insurgency, city surveillance, intelligence infrastructure, and other critical security infrastructure needs.” Increased investment by the Indian government to bolster homeland security capabilities comes as a result of the deadly Mumbai terrorist attacks, which left at least 100 dead.
To prevent a future attack, state police forces have purchased new equipment like sophisticated bomb disposal vehicles, wireless surveillance systems, and advanced firearms and night vision goggles.
This week, U.S. homeland security firms will participate in Aero India 2011 in the hopes of signing lucrative deals.
Aero India is the premier air show in India, and this year the burgeoning Indian homeland security market is a key aspect of its agenda given the expanded cooperation with the United States on counter-terrorism operations.
Last month Jane Holl Lute, the deputy secretary for homeland security, visited India in advance of Secretary Janet Napolitano’s extended dialogue in April.
Of particular interest to firms is India’s rapidly growing civil aviation market, which is expected to become one of the top five aviation markets in the world over the next five years.
India will likely need enhanced passenger screening capabilities, technology, and training given the sharp increase in airline travel. Last year, between January and June, passenger volume grew 22 percent over that same time period last year.
Demand is set to increase as more than 500 million people – 50 percent of India’s population – will become a part of the country’s middle class in the next fifteen years.
Just days before Aero India 2011, U.S. Commerce Secretary Gary Locke has gone to India to bolster trade relations.
Secretary Locke is leading a delegation of twenty four companies that include defense and homeland security giants Boeing and Lockheed Martin.
Last year bilateral trade between India and the United States increased nearly 31 percent from 2009 to more than $45 billion. Trade is expected to exceed $50 billion for the first time this year.
India is currently the third largest U.S. trade partner.
