Territorial conflicts in South China Sea over the past decade have fuelled the military expenditure of the Philippines. Against this backdrop, the Philippines government has signed a deal with BrahMos Aerospace Ltd worth USD 375 million to buy BrahMos cruise missile and induct the category in its defense arsenal. This is expected to solidify the Indian domestic aerospace and defense industry, finds GlobalData, a leading data and analytics company.
Chandan Kumar Nayak, Aerospace, Defense and Security Analyst at GlobalData, comments: “According to Global Missiles and Missile Defense Systems Market to 2031 estimates, India is expected to earn about USD 2.7 billion from BrahMos cruise missile export contracts which is projected to take place during 2021-2031. Besides strengthening India’s domestic aerospace, this contract will also help India achieve its vision of exporting its defense equipment to other countries.”
Additionally, defense organizations across the countries such as United Arab Emirates, Bulgaria, Greece, Egypt, Algeria, South Africa, Brazil, Chile, Malaysia, Singapore, South Korea and Thailand have shown interest on procuring the BrahMos missile systems from India.
Nayak concludes: “India is relatively a minor defense exporter globally; the country had still managed to export defense equipment with a cumulative value of USD 315 million over the period 2016-2020. Additionally, the Indian suppliers will be benefited from the Philippines BrahMos missile deal in the global missile market, as it will bring potential contract opportunities for Indian original equipment manufacturer (OEM) and system manufacturers.”