MARKET OPPORTUNITIES OF $2.73 BN IN 2018-19
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.
Analysis of Homeland Security Budget allocation of the Central Government
Capital Outlay on Policing by the Ministry ofHome Affairs
In Budget 2018-19, the Home Ministry received a total allocation of Rs 11,048.28 crore for 2018-19, 4.3% more than Rs 10,596.9 crore for revised estimates of 2017-18.
Capital Outlay for Indian Coast Guard
The provision of `2700 crores for 2018-19 is for capital expenditure by Indian Coast Guard.
Capital Outlay for Border Infrastructure and Management
The provision of budget estimates of ₹1580.6 crores for 2018-19 is for Induction of Hi-tech Surveillance on Indo-Bangladesh and Indo-Pak border, for setting up of mobile check posts in coastal areas, erection of barbed wire fencing, construction of roads, construction of O.P. Tower, installation of flood lighting etc., and, construction of Border Out Posts.
Capital Expenditure of Central Armed Police Forces (CRPF, NSG, BSF, ITBP, CISF, AF & SSB) & Central Paramilitary Force (AR)
For capital expenditure by the Central Armed Police Forces (CAPFs), the Home Ministry’s budgetary provisions have been pegged at `1274 crores for the next financial year, a hike of 14.2% over revised estimates of 2017-18, with a special emphasis on procuring Machinery, Equipments and Motor Vehicles.
BSF Air Wing, Aircrafts, River Boats and Helibase
`175.1 crore has been allocated to Border Security Force (BSF) for procurement and maintenance of Aircrafts, Water boats and Helicopters.
Capital Expenditure for Criminology & Forensic Science
The Home Ministry has made a provision of `19.5 crores in the next financial year for the modernisation of central forensic science laboratories with emphasis on human resources development and R&D schemes, and, establishment of regional forensic laboratories and DNA centres.
Capital Expenditure by Delhi Police
Delhi Police, which maintains law and order in the national capital, has been allocated `154.7 crores for developing traffic and communication network in NCR Mega Cities and model traffic system, upgradation or expansion of communication infrastructure, upgradation of training, and, induction of latest technology and installation of traffic signals, etc.
Expenditure on Modernisation of State Police Forces by the Ministry of Home Affairs
For the modernisation of police force, an amount of `897.3 crore has been earmarked. This item contains provision for the Schemes Modernisation of State Police Force, assistance to States for Special Projects/Schemes for upgrading Police infrastructure, Crime and Criminal Tracking Network and Systems and e-Prison. In addition, `2260 crore have been allocated for the Security Related Expenditure (SRE) for Left Wing Extremism (LWE) affected areas. This item contains provision for the schemes of Security Related Expenditure (SRE), special infrastructure scheme & special central assistance to 35 worst affected districts in the Left-Wing Extremist (LWE) affected areas, assistance to central agencies for LWE management, civic action programmes, media plan activities in various states.
Analysis of Homeland Security Budget allocation of the State Governments
Capital Outlay on Police by State Governments for 2018-19
Police Modernisation: Key Highlights from State Budget Speeches
Andhra Pradesh
• Modernisation of Police and Other forces ~ `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 crore
• 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
Conclusion
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).
Ankit Gupta is currently working as Senior Assistant Director in ‘Homeland Security’ sector of FICCI. In his current role, he is looking at bridging the gap between policing and technology. He isworking on various issues like Policy for UAVs/ Drones, SMART Policing, Police Modernisation, Smart Border Management, Cyber Crime Management and issues in the public procurement policy.He has created the first ever SMART Policing Awards in this country. Views expressed above are the author’s own. The data in this article has been referred from Budget Documents from Central and State Governments.
