Bangalore: With India likely to spend around USD 85 billion on defence in the next five years, National Small Industries Corporation is organising ''MSME DEFEXPO 2012'' next month in Bangalore that will provide an opportunity for domestic and global vendors to tap this market.

The 3-day event, commencing on March 3, will provide opportunity to global defence companies to find partners and build business with Indian defence PSUs and micro, small and medium enterprises (MSMEs).Though the country imports 70 per cent of the defence requirement from global vendors, it offers an opportunity that no global defence company can afford to miss, a National Small Industries Corporation (NSIC) official said.

India's defence modernisation plans also include focus on indigenisation. By 2020, the Defence Ministry has plans to achieve indigenisation of production and supply to the extent of 70 per cent.The Indian private sector defence supplier group is composed of around 5,000 companies (large and MSMEs). It accounts for around 20 per cent of the defence market in value terms.
"India's defence acquisition, modernisation and production plans therefore, represent a big opportunity for Indian private sector companies as well as MSMEs," the official said. Boeing, SAAB International, Tata Industrial Services and Centum would be among the major exhibitors. During the 12th Five Year Plan period (2012-17), the country''s defence imports could be as high as USD 84 billion and till 2020, as much as USD 140 billion. NSIC, under the Ministry of MSME, has been promoting and fostering the growth of local micro and small industries.