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Outdated equipments and system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).