Homeland security spells big biz opportunity

Homeland security has been a subject eliciting a lot of interest world over since 9/11 in New York and 26/11 of Mumbai. The November 26, 2008, attack in Mumbai had everyone talking homeland security in India in a big way.

It is starting to become an important subject in the country with Naxal attacks on the rise and often leading to losses in many crores.

With the State getting serious about the subject, it is expected to be a big spender trying to strengthen homeland security. “India is expected to spend to the tune of $15-20 billion on internal security. The Centre alone is expected to spend $7-7.5 billion on internal security,” Maroof Raza, defence analyst and senior advisor of Security Watch India (SWI). The SWI is an independent non-profit organisation that aims to spread security awareness and business by bringing together various stakeholders, including the common man. It aims to better prepare people to prevent terrorism, combat security threats, and minimise repercussions of an attack or disaster.

The huge amount at stake is attracting many a global company that’s trying to grab bite in the pie.

Today much of the equipment used are imported. With threats like Naxal attacks getting more frequent and graver, the question of homeland security is being taken more seriously.

Complains Raza, no one wants to spend on security while they are ready to spend on many other luxuries. There is reluctance on the part of the people to think of security threats which is a much greater threat than many other perceived threats.

But, the expenditure on private security has been significant though it is considered not adequate. The estimate is that Indian will be investing $12.3 billion on the private security industry by 2016.

According to a Frost & Sullivan report, “The high level of mass transport infrastructure construction will push this figure even higher.” Mass transport systems are increasingly being seen as ‘soft’ targets for criminal and terrorist activities as seen in the numerous attacks by Maoists in various parts of the country. On May 28, about 120 people lost their lives in a rail accident triggered by a sabotage of the track by Maoists in West Bengal.

Intelligent and durable surveillance systems within ‘rolling stock’ are key revenue generators. The emphasis on low total cost of ownership (TCO), self-diagnosing CCTV systems, automatic wireless image downloads and innovative passenger screening technologies will boost investment within this threat domain.