Watch for India in aerospace, defence deals arena: PwC

NEW DELHI: India and other emerging economies are steadily gathering momentum in the aerospace and defence deals space, where developed nations have been ruling the roost since long, a latest report says.

"Emerging markets are steadily gathering momentum and represented 20 per cent of the total aerospace and defence deals volume in 2007," auditing and consulting firm PricewaterhouseCoopers said in its report on aerospace and defence M&A.

Of the 43 deals announced in countries other than North America and Europe in 2007, 25 represented investments in BRIC countries Brazil, Russia, India and China PricewaterhouseCoopers said in its report 'Flying High 2008' - a review of M&A activities and key trends within the global aerospace and defence sector said.

"Out of these four countries India may be the one to watch given its growing budget and increasingly favourable environment towards foreign ownership," PwC added.

However, North America and Europe have grabbed the lion's share of the aerospace and defence deals investment in 2007. Of the USD 30.8 billion invested in 2007, nearly two-third was invested in North America and one-third in Europe.

The rest of the world (other than North America and Europe) accounted for 5 per cent by value in 2007, but in terms of volume this represented as much as 20 per cent.

Over three-quarters of the deals in Brazil, Russia, India and China have been internally generated in the last two years, wherein these deals were executed by BRIC investors.