The Indian aerospace industry is one of the fastest-growing aerospace markets in the world with an expanding consumer base comprising airlines, businesses and high net worth individuals. The rapid growth of this industry has attracted major global aerospace companies to India. All segments in the aerospace industry, including civil and military aviation and space, are showing a significant level of growth. While the long-term outlook for airlines remains robust, recent record growth is likely to slow as the aerospace industry weathers a soft patch driven by a cyclical slowdown in Asia and other key emerging markets . Few industry sectors are as sensitive to the macroeconomic environment as the aerospace sector. When the economy sniffles, the aerospace sector is often the first to catch the cold. And when the recovery is underway, it is often the aerospace sector that is the first to leap out ahead. Demand in the aerospace industry has increased sharply since the recession ended. There are several factors driving growth in manufacturing in India’s aerospace industry. These include both macro and micro factors - strong economic growth that has resulted in rapidly growing domestic aircraft demand, the liberalization of civil aviation policies, offset requirements, a strong domestic manufacturing base, cost advantages, a well-educated talent pool, the ability to leverage IT competitiveness and a liberal Special Economic Zones law that provides attractive fiscal benefits for developers and manufacturers. The challenges include access to technology, funding, poor availability and high cost of raw material and certification processes. However , less exploration has been done with respect to various categories of risks involved in the defense sector particularly with respect to developing countries. This research focuses on first exploring the various risks and thereafter studying the inter-relationships amongst them using ISM methodology .

Indian aerospace industry ISM methodology Defense sector Aircraft and aviation industry