THE INTRINSIC NEED to protect its people has catapulted India’s Homeland Security sector into unprecedented growth. The Homeland Security market comprises capital spend from central and state governments, private sector and some part of export demand. Prime Minister Shri Narendra Modi’s push for domestic manufacturing of defence equipment including homeland security equipment under his ‘Make in India’campaign has tremendously aided this growth.

A significant market opportunity exists in several domains comprising of the larger Homeland Security sector such as police modernisation, critical infrastructure protection and counter-terrorism activities. Rise in terrorist activities, growing crime rates, data thefts, remote monitoring, growth of public infrastructure, increasing IT spending, government initiatives and increasing security spending are boosting demand for the security systems market in India.

A recent report by FICCI states that India is most often referred to as a “soft state” owing to it’s 7500 kilometers of coastline running through 9 states and 4 union territories, difficult relationships with neighbors and the most important, the limited ability to systematically deal with numerous threats. Occurrences like the 26/11, Mumbai blast, security issues during the large public events, growing instances of terrorism & ethnic group conflicts has increased the focus on homeland security in India.

The central and state governments perceive modernization and upgradation as one of the key focus besides creating a supporting infrastructure for the long term. The Ministry of Home Affairs has targeted development of India’s Homeland Security focused infrastructure, like creation of a centralized comprehensive database called National Information Grid (NATGRID) by combining the individual databases of several government agencies, setting up of the CCTNS (Crime and Criminal Tracking Network and Systems) and modernization programs for providing better equipment and training to the security forces deployed with the task of internal security in India.

India offers a large potential for firms looking to leverage the opportunities apparent in this sector in the country on account of the following factors:

High GDP growth

Challenging relationships with neighbors

Outdated equipments and system

Increased spending on modernizing military capabilities and infrastructure

Focus on creating and enhancing support Infrastructure

Emerging public-private participation opportunities

Police Modernisation: Key Highlights from State Budget Speeches

Andhra Pradesh

Modernisation of Police and Other forces

A SIGNIFICANT MARKET OPPORTUNITY EXISTS IN SEVERAL DOMAINS COMPRISING OF THE LARGER HOMELAND SECURITY SECTOR SUCH AS POLICE MODERNISATION, CRITICAL INFRASTRUCTURE PROTECTION AND COUNTER-TERRORISM ACTIVITIES. RISE IN TERRORIST ACTIVITIES, GROWING CRIME RATES, DATA THEFTS, REMOTE MONITORING, GROWTH OF PUBLIC INFRASTRUCTURE, INCREASING IT SPENDING, GOVERNMENT INITIATIVES AND INCREASING SECURITY SPENDING ARE BOOSTING DEMAND FOR THE SECURITY SYSTEMS MARKET IN INDIA.

~ `173.3 crore

Andhra Pradesh Forensic Science Laboratory ~ `130 crore

Nation-wide Emergency Response System (NERS) ~ `76.4 crore

Modernisation of Fire and Emergency Services ~ `26.3 crore

Police Communications and Computer Services ~ `20 crore

Capital expenditure by State Intelligence Department ~ `10.39 crore

Arunachal Pradesh

Creating security infrastructure in the TCL region ~ `156 crore

First Phase of ‘Dial 112’ ~ `4.5 crore

Fleet of PCR vehicles, motor bikes, Traffic Lights and Wireless sets & City surveillance system with CCTV ~ `2 crore

Purchase of modern fire tenders ~ `5 crore

Assam

Setting up of SMART Police Stations ~ `100 crore

Strengthen Border Vigilance ~ `25 crore

Setting up Cyber Crime Police Stations ~ 35 Nos.

Planning to set up Forensic Science Institute in the Directorate of Forensic Science, Assam

Goa

Motor vehicles for Coastal Security Police ~ `10 crore

Modernisation of Police Force (P)~ `5 crore

Modernisation of Police Force (Highway Petrol)~ `2 crore

Gujarat

Strengthen police administration and Forensic Science administration under Police Modernisation Scheme ~ `67 crore

Installation of CCTV cameras under Safe and Secure Gujarat Scheme ~ `102 crore

Start four new cybercrime police stations at Surat, Vadodara, Rajkot and Mehsana ~ ` 1 crore

Haryana

Launch of a flagship programme ‘Haryana 100’ ~ `153 croreand operational cost ~ `40 crore

Karnataka

Capital expenses other than housing, construction of building etc. ~ `231.4 crore

Kerala

IT based systems. ~ `20 cror

Modernisation of Vigilance Department. ~ `10 crore

Madhya Pradesh

Security of big cities and sensitive places ~ `147 crore

Modernisation of Police Force ~ `84 crore

Infrastructure development of Police Station for Mahila Police Force ~ `40 crore

Mizoram

Arms & Ammunition `1 crore

Rajasthan

New 210 vehicles to police force-exp. of ~ `7.10 lac

Establishment of the Sardar Patel Global Centre for Security, Counter Terrorism and Anti-Insurgency ~ `91.66 crores

The rising number of terror attacks, ethnic conflicts, insurgencies, partisan politics in countries has led the governments to realise the value and need for detection and protection monitoring devices, as well as the importance of bringing together the various state-led agencies that manage various aspects of domestic security. This has resulted in increased demand for security systems including explosive detection systems, body screening systems, and baggage screening systems.

The increase in FDI in defence provides huge opportunity to vendors for developing internal and cyber security solutions. In 2015 FDI cap in defence through automatic route has been raised to 49%. Deals involving FDI beyond 49% are subject to approval by the Government of India, where access to modern technologies is involved. Other factors such as increase in demand for security solutions by Indian businesses, Technological innovations and decline of prices of security solutions etc. are contributing to the growth of Indian Homeland Security market.

Central and State Governments intend to leverage the capabilities of the private sector to meet the needs in homeland security for Safe City Surveillance, Border Infiltration, Counter Terrorism, Police Modernisation, Intelligence, Critical Infrastructure, Maritime Security etc. There is a business opportunity of 2.7 bn USD approx. in this sector. Capital Expenditure by the Ministry of Home Affairs for Policing in 2018-19 is estimated at `11048.19 crores ( 1.7 bn USD ) which is 4.3% higher than last year's capital expenditure. Capital Expenditure by the State Governments for policing in 2018-19 is estimated at `11048.19 crores (1.03 bn USD).