Overview

In recent years, the Indian safety and security industry has experienced steady growth, with some segments estimated to be growing 15 to 20 percent annually. Population growth, urbanization, industrialization, and expansion of infrastructure and mass transportation systems are all driving expectations for greater safety and security measures, particularly linked to critical national infrastructure projects. The security systems market in India is broadly classified into the following subsectors: cybersecurity; electronic security; fire safety, detection, and prevention; road safety; private and industrial security; and personal protective apparel and equipment. The industry is highly fragmented and consists of local manufacturers, system integrators, sub-contractors, regulatory and certification agencies, distributors, consultants, and service providers.

The Indian Safety and Security Industry ($ million)

Total market size = total local production + imports – exports

Data Source: Global Trade Atlas (GTA); USDOC Statistics

Growth in India’s safety and security market is largely due to the ever-increasing requirements for safety, coupled with a boom in technological adaptation across all segments of society. Though the market is price sensitive, increasing awareness of quality, reliability, and timely after-sales service has led to willingness from some customer segments to pay a premium for innovative and technologically advanced products. While there is a push under the “Make in India” initiative for indigenous production, demand and market opportunity for U.S. manufacturers, suppliers, and solutions providers continues to grow.

The Indian government has steadily increased its budget allocation for this industry, which has experienced a compound annual growth rate of 12 percent over the last five years. This growth outpaces India’s defense budget, which has grown at five percent annually. During the same five-year period, the Ministry of Home Affairs’ capital expenditure on policing has also grown at a rate of five percent. This reflects the importance the Indian government places on the safety and security sector, as well as the government’s increasing focus towards modernizing the security equipment in the country.

In recent years, the Indian government has initiated a wide range of vital infrastructure projects, including new airports, seaports, highway development projects, urban rail systems, and the expansion of smart city technologies. These developments, coupled with the rise in the use of Internet of Things, advanced manufacturing systems, and smart technologies across industries, are driving demand in the safety and security sector.

End-users of safety and security products and services in India include airports, mass transportation system operators, government agencies, law enforcement and intelligence agencies, military and paramilitary forces, emergency and disaster management agencies, private security agencies, manufacturing operations, and commercial and non-commercial enterprises.

Policy and Regulatory Environment

The policies driving safety and security in India are unique to each subsector outlined below.

Cybersecurity: In August 2023, the Rajya Sabha, the upper house of the Indian parliament, passed the Digital Personal Data Protection Bill (DPDPB) 2023. The bill aims to protect the privacy of Indian citizens and safeguard personal data in the context of a globally interconnected digital economy. It sets obligations for entities that process data through an emphasis on individuals providing consent for data use and provides safeguards for children’s data. The Bill also allows for cross-border data transfers, outlines exemptions from the Bill, notes the responsibilities of the Data Protection Board (DPB), financial penalties for data misuse, and a grievance management system.

Homeland Security: The Indian government has introduced policies and initiatives to promote “self-reliance” across a range of sectors. For example, the Defense Procurement Policy for indigenization of components and spares used in defense platforms aims to create an ecosystem to indigenize imported components, including alloys and special materials, as well as subassemblies for defense equipment manufactured in India. Increased purchases of indigenous defense products by the Indian armed forces under the self-reliance policy threatens to reduce opportunities for foreign suppliers interested in bidding on Indian government tenders.

Industrial Security: The Bureau of Indian Standards has developed Occupational Health and Safety standards for workplace safety, but there are no uniform standards currently in place. Each state maintains different standards, which can make navigating these regulations complicated.

Fire and Life Safety: The National Building Code of India, published by the Bureau of Indian Standards, provides detailed guidelines for construction, maintenance, and fire safety of structures. The office has issued mandatory guidelines and advisories to state governments to incorporate recommendations of the National Building Code into state-level building bylaws. These guidelines vary from state to state.

Road Safety: The Indian government’s National Road Safety Policy outlines initiatives taken by the government to improve road safety activities across the country, including application of Intelligent Transportation Systems under the national framework to establish a safe and efficient Indian transportation network. However, the process of land acquisition for national highways has faced pushback from stakeholders around landowner compensation.

Opportunities

Security and Surveillance: With the successful deployment of surveillance and smart city projects in several Indian cities, adoption of video surveillance systems is expected to increase. Emerging technologies in video analytics, biometrics, facial recognition, and CCTV systems are becoming important for city surveillance monitoring and analysis, providing opportunities for U.S. suppliers.

Airport Security: India’s civil aviation market, the third largest in the world by passenger numbers after China and the United States, is expected to continue its rapid, pre-pandemic growth rates. By 2035, India is expected to need an additional 2,500 passenger aircraft. India has a 20-year roadmap to develop civil aviation and envisions a five-fold increase in airports to handle over one billion trips a year. The Bureau of Civil Aviation Security (BCAS) is the regulatory authority for civil aviation security in India. Airport development projects and the growth of the airline industry present opportunities for U.S. safety and security companies with technologies designed for these sectors.

Homeland Security and Policing: Security and border protection are a priority for the government of India. The Indian central government and multiple state governments are working toward the modernization of police forces across the country. To improve internal security and equip law enforcement agencies, there is a need for sensors, scanners and detection equipment, protective gear, armor, and night vision devices. The Land Port Authority of India is in the process of an ambitious review of International Check Points at border crossings across India, with plans to upgrade existing International Check Points and develop new installations over the next decade.

Infrastructure: Several Indian states are planning projects to develop power, infrastructure, roads and highways, airports, high-speed transportation networks, special economic regions, safe and smart cities, and national emergency response systems. To achieve its target of a $5 trillion economy, the Indian government has plans to invest approximately $30 billion in smart city initiatives. These projects are expected to provide opportunities for U.S. safety and security companies. Related hardware will be in high demand, including surveillance and safety equipment, communication devices, displays and video surveillance, access control systems, and detectors and sensors that incorporate Internet-of-Things technologies, power backup systems, and traffic management systems.

Fire Safety: High-rise buildings and urban congestion pose a challenge for fire-fighting personnel. To minimize fire hazards, the Indian government is focused on introducing smart city technologies across the country, which will in parallel increase demand for advanced and innovative fire safety products and solutions. The Bureau of Indian Standards has set more than 150 standards for firefighting equipment and systems. To understand relevant industry standards, U.S. companies are encouraged to contact the Bureau of Indian Standards or request the U.S. Commercial Service to facilitate a meeting.

To learn more about opportunities in this sector, contact United States & Foreign Commercial Service Commercial Specialist Mala Venkat.