Defence - #SectorUpdates
India and Egypt have signed a MoU to further boost bilateral defence cooperation. Both countries will focus on defence coproduction and maintenance of equipment as well as joint training. Egypt has expressed interest in acquiring military platforms from India. Among other things, Egypt is considering the indigenous Light Combat Aircraft (LCA) for its fighter requirement. Market analysts feel a couple of factors including the substitution of expensive foreign inputs, high expenditure as a percentage of Gross Domestic Product (GDP) and rapid turnaround of order backlog are about to reshape the Indian defence industry, which has already delivered robust returns to investors in the past few years. As per industry sources, investors are currently bullish on the sector. India was the largest importer of arms in 2017-21, accounting for 11% of the total global arms imports – arms imports are bound to come down with rapid indigenization. About 25% of the total budget set aside for defence research in India is allocated to the private sector and startups.