India to emerge largest security market in next 10 years: report

India to emerge largest security market in next 10 years: report

New Delhi: In the following decade, India could emerge as one of the largest players in homeland security systems, says a report released Wednesday, by the Associated Chambers of Commerce and Industry of India (Assocham) and KPMG.

The Assocham-KPMG report ‘Homeland Security in India’ predicts that by 2020, India, along with Britain, Germany and France, might outgrow the United States, which presently enjoys a 34% of the market share in this field. “India, which currently shares 3.6% of global homeland expenditure, will require to take it upwardly to an extent of 6% over the next decade to effectively take on emerging security risks," the report notes.

The report predicts that apart from the aforementioned countries, UAE is expected to exhibit the fastest market growth in this sector, driven by a combination of economic growth along with increasing threats of terrorism faced by it.

“As per current estimates homeland security expenditure projection as a percentage of global spending in case of India is 3.6%, France 3.4%, Germany 3.7%, Saudi Arabia 4.5%, UK 3.9%, China 5.2%, USA 33.3% as against 43% of other countries. India offers a large potential for firms looking to leverage the opportunity manifested in this sector on account of high GDP growth, challenging relationship with neighbours that are unlikely to resolve in the years ahead, ageing and obsolete equipment and high spending on modernizing military capabilities and industrial infrastructure," the report said.

The report further notes that in the wake of India opening up its nuclear sector, nuclear market requirements will be extremely critical and India will have to spend a great deal to keep its nuclear installations completely fool-proof against all possible security threats.