This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/7/2017
India
Capital:             New Delhi
Population:       1.311 billion (2015)
GDP:                $ 2.074 trillion (2015)
GDP ranking     7 (nominal)
GDP ranking     3 (based on purchasing power parity)    
Currency     Rupee
Source:           http://www.worldbank.org/en/country/india
           
Language: English enjoys associate status but is the most important language for national, political, and commercial communications. The major official language of the Indian Union is Hindi, which is the primary tongue of 30% of the people. Besides Hindi, other prominent regional languages include: Assamese, Bengali, Gujarati, Kannada, Kashmiri, Malayalam, Marathi, Oriya, Punjabi, Sanskrit, Sindhi, Tamil, Telugu, and Urdu. 700 dialects are also spoken. English has become a sort of "lingua franca" and is the accepted language for business and government.

SUMMARY
The safety and security industry in India is still at a nascent stage and is poised for a strong growth, in the years ahead.  The industry is dominated largely by the unorganized sector which accounts for a larger share in the market. The Indian security equipment and services market is primarily driven by the rapid urbanization and the ongoing globalization wherein, the need for robust and updated security technologies is gaining momentum with each passing day.
 
India is the most buoyant, emerging and fastest growing market in the world.  The federal government of India has made its intention clear to revamp the country’s ailing infrastructure by announcing new airports, ports and to build 100 smart cities across the nation.  For cities to be smart it first needs to be safe, this concept alone will lead to a great demand for the safety and security products and services across multiple segments.
 
The flourishing economy and rapid growth  in sectors such as airports, construction, energy, ports, telecom, railways, road and retail, coupled with the influx of multinational companies has been the primary driving force for creating demand for the security industry.  The unprecedented terrorism incidents in the recent times and ever increasing crime rates have triggered the demand for security and surveillance products.
 
Indias major end users include the armed forces, airports, banks, multinational companies, VIP security agencies, police, ports and the private sector.
 
MARKET ENTRY
There are no restrictions on the import of surveillance equipment into India. However, the components of the total import duty include a basic duty (applied on the cost insurance freight (CIF) value of goods); additional duty (popularly called countervailing duty), which is equivalent to the excise duty on similar articles manufactured within the country; a special additional customs duty; and an educational tax of three percent.
           
The Government of India's Reserve Bank does not normally allow advance payments for imports. Government purchases follow a tendering process. Most of the government tenders follow two parts: technical bids and commercial bids. All government tenders are time consuming and one needs to have patience to pursue opportunities here in India.

CURRENT MARKET TRENDS
The electronic security systems market is the largest sub-sector which provides the maximum scope for security imports. The market for electronic security equipment in India is largely untapped and underserved. However, growing consciousness in India about the security has encouraged companies and government to increasingly invest in electronic security equipment’s and services. The rising disposable incomes and growing affluence consumer base has also supported the increase in demand for the electronic security equipment’s in India. The demand for the electronic security systems is largely generated by the commercial, industrial and public sectors in the country which have been taking measures to increase security. The electronic security market in India consist of sub-sectors that includes access control systems, video surveillance, intrusion alarm, intercom surveillance equipment, alarm systems, fire detection and protection systems. The electronic security market has seen a growth of 15 -20 percent annually in recent years and it is likely to continue to grow at the same pace. It is estimated that approximately 60% of the products sold in India are imported. There is rising concern over terrorism and crime which is the key drivers of demand for this sector.
 
The government of India (GoI) has also taken various initiatives intended for uplifting  the  overall  industry,  which  in  turn  acts  as  a  boon  for  the  players operating in the market. Allowance of FDI and the permission for CISF deployment as private security forces happen to be some of the major initiatives taken so far. Additionally, GoI has also signed pacts with Israel for the facilitation of better homeland security. Various state governments have also played an important role by entering into collaborations with Central Association of Private Security Industry (CAPSI) for the setting up of training centers for security guards, so as to provide an enhanced security cover to the nation.
 
The fire protection industry has gained importance in recent years. It is estimated that  the  loss  of  assets  due  to  fire  globally is  almost  $100  billion per  year and increasing every year.  The total world market for fire protection business shows an upward trend.  The market in India is being driven largely by the small players having regional presence and this sector is set to experience increasing growth over the coming years as a result of increasing awareness among the population regarding fire safety, security and asset management, and strict state level norms on fire safety.
 
A recent report titled “India Fire Safety Equipment Market Forecast & Opportunities, 2017” anticipates that the fire safety equipment market in India shall cross USD 4.26 billion by 2019. A report by Fire & Security Association of India (FSAI) titled “India Electronic Security Equipment Market Outlook 2016” estimates the total sales of electronic security equipment to surpass USD 1.4 Billion by 2016.  
 
The Indian fire protection market is expanding to meet the growing demand from the user segment. large office space, technology parks, commercial complexes, airports, petrochemical complexes, manufacturing ventures are expanding and these ventures continue to support the growth of the fire protection demand in the country.
 
The fire-fighting industry in India has tremendous potential. As the economy grows, both industry and government are updating fire protection systems for continued operations in industrial plants and offices. The government regulations for fire safety are now mandatory and this has further brightened the market outlook for fire protection systems in India.
 
Technology parks, office buildings for IT/ITES, infrastructure development, new hospitals, shopping malls, hotels and banks will contribute to the demand for fire protection in India.
 
The Government is investing heavily in infrastructure development, upgrading existing airports and setting up new airports and metros in various cities in India. These continue to drive the demand for fire protection. Large refineries, petrochemical complexes, biotechnology ventures, pharmaceutical, automobile, steel, other manufacturing projects and oil/gas exploration program have specialized fire protection requirements.
 
The fire protection systems market size is expected to grow from USD 47.96 Billion in 2015 to USD 98.24 Billion by 2022, at a CAGR of 10.1% between 2016 and 2022.
 
Video Surveillance market is expected to reach US$ 952.94 million by 2016, with a CAGR of 32.49%. It is expected to top $ 2.4 billion by 2020.
 
The security and surveillance market in India is growing at a swift speed. The Indian market for video surveillance equipment is estimated to grow to $223.8 million by end of 2016. The industry revenues of India's fire safety equipment’s market is expected to cross USD 4.26 Billion by the end of 2017.
 
MAIN COMPETITORS
U.S. companies such as 3M, Boeing, Cisco, Colt, Cross Match Technologies, DuPont, Honeywell,  
Infinova, NABCO, Raytheon, Sig Sauer, Smith and Wesson, Texas Instruments and Textron are already operating in the Indian market. These U.S.  companies provide global state-of-the-art  commercial  
and homeland security technology products, solutions and services for border protection, marine
security, counter insurgency, city surveillance and other critical security infrastructure needs.
Companies from Japan, Israel, Italy, Taiwan and UK also have an active presence in the country
promoting their products, including monitoring equipment, interceptors, and other electronic devices.
 
CURRENT DEMAND
  • Audio visual surveillance
  • Aviation and airlines security systems
  • Baggage scanners
  • Biometric devices
  • CCTV/ Access control Systems
  • CBRE decontamination solutions
  • Detective services
  • Emphasis on quality training from accredited sources
  • Equipment for hospitality and bank security
  • Explosion detection and disposal robotics
  • Fire alarm and firefighting equipment
  • Integrated solutions
  • Metal detectors
  • Safety & security training institutes
  • Surveillance devices for open space and interior protection
  • Traffic monitoring devices
  • New growth areas include: Small scale industries, educational institutes, private offices, residential apartments, critical infrastructure, and prison security.                         
BARRIERS
The safety and security industry lacks of a common standard and the presence of varied product as well as technologies are proving to be barriers in integration, collaboration as well as communication of various solutions.  In addition, lack of coherence among the different stakeholders is the stumbling block in the development of the security industry in India. 
 
The stakeholders in the security surveillance business have made representations to the government through the Fire and Safety Association to cut customs duty on equipment imports. The industry has also appealed to the government to grant it a status to that of the IT industry.

TRADE EVENTS
Name of the event:            Occupational Safety and Health - OSH India    
Date:                         10-11, November 2016
Location:                  CIDCO Exhibition Centre, Vashi, New Mumbai
Website:                   http://www.oshindia.com/
Occupational safety and health show organized by UBM India is a two-day exhibition & conference connecting safety professionals and experts from the industry.  The show provides a wide range of avenues to do business and gain knowledge through various forums.
 
Name of event:         IFSEC India
Date:                           December 8-10, 2016
Location:                    Pragati Maidan New Delhi, India
Website:                      http://www.ifsec-global.com/india/
IFSEC India and Homeland Security India is South Asia's largest security exhibition, displaying the most cutting edge commercial, homeland security and fire safety technologies, products, solutions and services, with onsite product launches from major industry suppliers.
 
Name of the event:  Fire & Safety India 2017 exhibition and conference
Date:                           April 6-8, 2017
Location:                    Bombay Exhibition Centre, Mumbai, India.
Website:                     http://firesafetyexpo.in/
Fire & Safety India 2017 exhibition and conference is an international exhibition and conference for key players of fire & safety segment, to be held concurrently with the Fifth Edition of Secutech India 2017, from April 6 to 8 in 2017. The show provides opportunities for companies to exhibit fire safety, protection and prevention solutions and products.
 
Name of the event:        Fire India 2017
Date:                            7-9, September 2017
Location:                      Bombay Exhibition Center, Goregaon, Mumbai
Website:                       http://www.fire-india.com/website2017/firemumbai.htm
Fire India 2017 offers business opportunities to the fire industry and is a meeting ground for fire equipment manufacturers from around the world and attracts potential buyers from various sectors.

U.S. COMMERCIAL SERVICE CONTACT INFORMATION
Name:   Srinivasa Murthy
Position:           Commercial Specialist
Email:   Srinivasa.Murthy@trade.gov
Phone:  91 80 2227 6402
 
Useful Links:


Asean Professional Security Association (APSA)                        http://www.apsa-india.org/
Bureau of Indian Standards (BIS)                                                              http://www.bis.org.in/index.asp
Central Association of Private Security Industry (CAPSI)                         http://www.capsi.in/
Electronic Security Association of India (ESAI)                           http://esai.in/
Fire Protection Association of India                                            http://fpai.in/about.aspx
Fire & Security Association of India (FSAI)                                 http://www.fsai.in/about-fsai
Institution of Fire Engineers (India)                                             http://www.ifeindia.org/
National Academy of Fire and Safety Engineering (NAFS)           http://www.nafsindia.com/
National Disaster Response Force
and Civil Defense (Fire Cell)                                                       http://ndrfandcd.gov.in/Fire.aspx
National Fire Protection Association (NFPA)                                         http://www.nfpa.org/
Security Association of India                                                     http://securityassociationofindia.com/
 
Matrix Key
1Little to no probability of success
2More challenges than opportunities
3More opportunities than challenges
4Very high probability of success
 
 
Key ApplicationsCountry: India
Video Surveillance Systems
Including: CCTV/Video surveillance, Video Management, Video Analytics
4
Intrusion Detection/Burglar Alarm systems
Including: Door alarm monitoring, Sound and glass break sensors, Security system monitoring
3
Electronic Access control System
Including: Proximity and Smart cards, Electromechanical locking solutions, Biometrics
3
Entrance Solutions
Including: Mechanical locks, Automated gates, Vehicles barriers, Turnstiles, Roll-up doors
3
Physical Security
Including: Fencing, Grilles, Bullet resistant glazing, Mechanical window coverings, Safes, Locks
2
Scanning Equipment
Including: Narcotics/explosive
/metal detectors, Scanning and screening equipment
3
Article Surveillance Systems
Including: RFID systems, proximity tag systems
3
Personal Protections Products
Including: Goggles, Bullet proof vests, Mace
2
Protection services
Including: Bodyguards, Security guard services
1
Consultancy Services
Including: Risk analysis, Risk management, Disaster recovery, Business continuity, Organizational
resilience
1
National Security
Including: Counter terrorism, Border security, Critical infra., Command & control, Law enforcement eq.
3
Fire & Rescue
Including: Fire/smoking detection, Fire suppression, Fire proofing, Leak detection, Protective gear
3
IT Security
Including: Cyberterrorism, Anti-malware, Encryption

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



India Safety and Security Trade Development and Promotion