Jun 16, 2015 05:10 PM IST | Source: CNBC-TV18
Look at defence space, says Hemindra Hazari
According to Hemindra Hazari, Independent Market Expert, one may look at defence space.
Hemindra Hazari, Independent Market Expert told CNBC-TV18, "Defence is one of the few sectors which I am very positive about. One is that Indian’s defence capital budget is also quite enormous. One of the major beneficiaries of this ‘Make in India’ will be the defence sector and that is why you are seeing these large corporate groups investing so heavily in various defence companies. What will happen is that they are going to take away lot of the orders from the public sector which were catering to defence and therefore even though the total defence pie may not increase because of budgetary constraints, the private sector will get lot of orders from the public sector defence companies. So, what the public sector companies will lose out, the private sector companies will gain."
"All the big players L&T
, Mahindra’s, Tata’s, they all have some select small companies which normally they don’t talk too much about but that is where all the technologies are done. There has been growing criticisms of India’s defence PSU, saying that we have not really done much for the amounts invested in but having said that, even the private sector if you look at it in its totality, hardly spends anything on research and development. So, I don’t think tremendous breakthroughs will happen in terms of technology even if we get the private sector in but definitely private sector is going to get more orders and the PSU defence are going to get less orders," he added.