Impact of Covid-19
The defense industry in India witnessed a significant downturn on account of global trade restrictions following the outbreak of COVID-19. Defence public sector undertakings had to stop working on most of the projects after the imposition of the lockdown. The sector shifted its focus to manufacturing essential commodities only, such as personal protective equipment (PPE) kits, masks, and ventilator parts, to help the government fight the pandemic. Around 90% of the small private manufacturers that supply essential components to the industry had to halt the production of components till May 30th, 2020.
The government had to tighten defense expenditure on account of the global crisis. In the first quarter of FY 2020, it withheld 15% – 20% of funds reserved for the defense ministry. In May 2020, it stated to abolish 9,300 posts in the military engineering service (MES).

Market segment insights
The defense budget has increased at a steady rate in the last five years, from FY 2016 to FY 2020. Though the overall defense budget has been growing, the defense expenditure has declined as a proportion of the GDP. The Indian Army accounts for the highest share of the defense budget, followed by the Air Force, Navy, DRDO (Defense Research and Development Organisation), and ordinance factories.

Key challenges of the market
Indian government has not been able to attract significant private sector investments in the defense manufacturing industry. This has resulted from delays in decision-making on the government’s part, placing unsystematic orders, canceling tenders, and placing unreasonable qualitative requirements by the Indian Armed Forces. Several Indian private defense companies had invested in improving their production capabilities to receive government support and orders. However, they have been left disappointed. For example, in May 2020, the private sector defense equipment manufacturing start-up, Tonbo Imaging, wrote an open letter to the prime minister underlining the cancelation of orders and delays in payments.

Government initiatives
In May 2001, the defense sector, which was only reserved for the public sector, was allowed 100% participation by the Indian private sector bound by licensing. A total of 460 defense licenses were issued by the government, covering 275 companies, till 31st December 2019. In the Defense Procurement Policy 2020 (DPP), the limit of foreign direct investment (FDI) through the automatic approval route has been increased to 74%. BAE Systems, Pilatus, Lockheed Martin, Boeing, Rafael, and Dassault Aviation are some of the major investors in the industry.

The post Defense Expenditure Trends in India 2021 first appeared on CRI Report.

The warehousing industry in India is no longer restricted to just loading, storing and unloading of goods. Companies are now investing in providing better customer experiences, which includes mobile apps to track shipments, estimate shipment times, check the cost of transfers, and more.

There’s an increasing need for multipurpose logistic centers, as warehouses form a crucial supply chain element that holds the key to both customer satisfaction and cost reduction.

The warehousing industry in India is subjected to stringent regulations and policies regarding licensing, performance, and accountability. The warehousing market in India can be categorized into four types – Industrial or Retail warehousing, Container Freight Station or Inland Container Depot, Agri warehousing and Cold Stores. A majority of the market is occupied by Industrial or Retail warehouses, while most of the warehouses in India (48%) are located in the North East region. Indian agri warehouses store rice, sugar, cotton, maize, pulses, oil seeds, wheat and other crops.

Warehouses today don’t just serve as a stocking point. Their utility portfolio has diversified to being consolidation centers for multiple sourcing locations, providing cross-docking facilities to retail distributors, a sorting center for customer deliveries, and an assembly facility for final packaging and bundling.

Warehousing Market in India – Key Growth Factors
Netscribes forecasts a rising demand for state-of-the-art warehouses over 2017-2020, giving a boost to the logistic industry as a whole. GST and Make in India initiatives are also expected to fuel the demand for warehousing space in the country.

Warehousing Market in India – Threats and Key Players
Factors that are adversely affecting the market include improper logistic management, lack of standardization across sectors and scarcity of land in the country. There’s intense competition in the warehousing industry in India. IT-driven solutions are further raising the bar by actively developing the way warehouses and logistics are managed. Some of the major players in the industry include Aegis Logistics Ltd., Allcargo Logistics Ltd., Blue Dart Express Ltd., Container Corporation of India, and Food Corporation of India.

What’s covered in the report?

An overview of the warehousing market and growth forecast in India
Analysis on competitive landscape and profiles of major companies in the industry
Evaluation of the market growth drivers, challenges, and opportunities
Trade analysis of the warehousing market in India.

Why Buy?

Get a broad understanding of the warehousing market in India, the dynamics of the market, and current state of the sector.
Strategize marketing, market-entry, market expansion and other business plans by understanding the factors driving the growth of the market
Be informed regarding the key developments in the field of warehousing market in India
Understand the business of the competition, the market dynamics, and respond accordingly.

Slide 1: Executive Summary

Socioeconomic Indicators
Slide 2: Total Population (2010-2011 – 2019-2020), Population Density (2010-2011 – 2019-2020)
Slide 3: Sex Ratio (2005, 2010, 2015, 2020), Population by Age Group (2005, 2010, 2015, 2020), Urbanization Trend (2010-2011 – 2019-2020)
Slide 4: Total Fertility Rate (2005-2010, 2010-2015, 2015-2020), Infant Mortality Rate (2005-2010, 2010-2015, 2015-2020), Total Number of Births (2005-2010, 2010-2015, 2015-2020), Total Number of Death (2005-2010, 2010-2015, 2015-2020)
Slide 5: Total Literacy Rate (2001, 2011), Rural Literacy (2001, 2011), Urban Literacy (2001, 2011)
Slide 6: GDP at Market Prices (2010-2014), FDI (2010-2014), Inflation Rate (2010-2014), Unemployment Rate (2010-2014)
Slide 7: Access to Safe Drinking Water (2001, 2011), Exchange Rate (2010-2015)

Market Overview
Slide 8: Market Definition and Structure
Slide 9: Warehousing Market size and growth forecast in India 2017 (Value-Wise; FY 2015 – FY 2020e) and warehousing market segmentation FY 2015
Slide 10: Status of warehousing capacity in India
Slide 11: Region wise distribution of storage capacity in FY 2015 & Commodity wise share of Indian warehousing industry in FY 2015
Slide 12: Demand for warehouse space in top 7 cities

Trade Analysis
Slide 13 – Porter’s Five Force Analysis

Market Influencers
Slide 14: Market Drivers
Slide 15: Market Challenges

Competitive Landscape
Slide 16: List of Major Players
Slide 17-37: Profiles of Major Players

Recent Developments
Slide 38: Key recent developments

Appendix
Slide 39: Research Methodology

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