Aerospace & Defense Exporter Alert, Jun. 2022

Brought to you by the U.S. Department of Commerce's, Industry & Analysis Aerospace Office and U.S. Commercial Service

Market of the Month, India Top U.S. Export Destinations, India Industry Trade Advisory Committee, Aerospace Equipment (ITAC1) Signature Events & Programs Global Trade Events Contact Us Market of the Month, India Let us briefly understand today's India. Home to 1.3 billion people, it is one of the world's fastest growing economies, spending billions of dollars aggressively to improve infrastructure. Foreign suppliers have a key role to play in offering advanced technology to help India make this transition. India's huge market can be complex and diverse. Successful U.S. companies often invest in better understanding the forces that drive the country's market. India's 300 million-strong middle-class, for instance, exercises its influence on major policy matters. India and the U.S., over the years, have developed a mutual affinity. U.S. culture, products and services are accepted with much ease in India. This natural attraction is an asset for U.S. investors. India has been a customer of some of the best U.S. aviation and defense technology, thanks to strong commercial, military, and political relationships. The trajectory of this relationship mitigates many of the hurdles in the Indian market. The Make in India initiative, specifically, is often a challenge for US companies but one that can be overcome through partnerships with Indian entities. Civil Aviation With the industry's $30 billion contribution to India's GDP, the domestic aviation market is estimated to be third largest globally by 2024. 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. Experts estimate that the industry will require over 100,000 new pilots, technicians, and cabin crew personnel. The Indian government also plans an increase in helicopter strength through its 'Policy for promotion of Helicopter operations', which will encourage operators creating demand and growth for services such as emergency rescue, aerial work, disaster response, and airborne law enforcement. In pursuit of its goal to capture 25 percent of global market share, India has prepared a road map to become a UAV hub by 2030. While restrictions have been imposed on UAV imports to encourage indigenous manufacturing, U.S. companies can still find opportunities to collaborate with local partners for advanced UAV software/technology. India's growing fleet of airplanes will demand more maintenance services. Approximately 90 percent of India's MRO activity occurs outside India, predominantly in Sri Lanka, Singapore, and Malaysia. The government has revised its MRO policy to provide this segment ease of doing business. Efforts are underway towards making India a center for services in the region. Its location between Europe and Southeast Asia, and proximity to the Middle East, is an advantage. Airport and aviation safety and security systems is another priority segment. The Government is also making efforts to promote use of green energy at airports through 14 policy areas proposed under the draft National Green Aviation Policy. Space India is one of the few countries in the world with an advanced space program that has seen major growth over the last several years. Additionally, the Indian commercial space sector is on the threshold of significant change. To develop and enhance Indian private sector participation in the country's space programs and to expand its share of the global market, in May 2020 the Indian government announced access for the Indian private sector to its space activities and programs, a major shift in policy. India's share of the global U.S.$360 billion space market currently stands at less than three percent. India's launch business currently accounts for less than 1% of the global launch services market generating revenues worth $288 million in a global market of $35 billion. India's recent steps towards privatization potentially create opportunities for international space companies. In recent years, some Indian start-ups have developed innovative space systems, launch vehicles, and small satellites to include on future Indian launches. As the Indian private sector gears up to play a greater role in Indian space programs, Indian industry will look towards international cooperation and partnerships to develop and upgrade their capabilities. This presents opportunities for U.S. space companies to partner with Indian industry and participate in Indian space programs. Defense India enjoys a unique status as a Major Defense Partner of the United States. As bilateral ties between the United States and India grow, cooperation in the defense sector is likely to grow in parallel. Defense is one of the most promising sectors for U.S. exports to India, thanks to American technological edge and India's security situation. India has already procured over $18 billion in equipment, including Boeing Apache and Chinook helicopters; P-8I maritime surveillance aircraft; C-17 heavy transport aircraft; Lockheed Martin C-130s; and BAE M-777 howitzers. The Make in India policy makes it imperative for US companies to reorient market strategy. With the Indian government's focused approach to expanding indigenous defense manufacturing, US firms may struggle initially. India's defense ministry has included 310 items (weapons and platforms) to date in restricted import list. Foreign competition on government procurements in India is intense. Major U.S. defense companies are expanding manufacturing operations in India to support the Indian government's efforts to strengthen its domestic defense industry. This will create additional opportunities for second and third tier U.S. suppliers. India's 2022 Defense Budget reserves 25 percent of total Research & Development (R&D) spendings for start-ups and private sector, including design and development of military equipment and platforms. This may be seen as a major opportunity for the U.S. companies to collaborate with local partners in this segment. Upcoming Events: For companies seeking in-person opportunities to enter the Indian market, there are at least three events of interest: Bengaluru Space Expo (BSE) 2022, Bengaluru, India. September 5-7, 2022, Organized by the Confederation of Indian Industry (CII), India's premier business chamber in association with the Indian space agency, ISRO (Indian Space Research Organization), the three-day event will comprise of exhibition and an international conference highlighting developments in the Indian space sector and providing a platform for Indian and International space agencies and private businesses to interact and explore partnership opportunities. Aerospace India Trade Mission, Main stops (New Delhi, Hyderabad), Spin-off stops (Mumbai, Bengaluru), September 19-23,2022. The purpose of the mission is to introduce U.S. companies to India's aerospace ecosystem and assist delegate companies with finding business partners and exporting their products and services to the region. Aero India 2023, Bengaluru, India, Dates TBD, The Aero India 2023 show is organized by the Indian Ministry of Defence (MoD) and it is the country's largest biennial premier air show and aviation exhibition. The show demonstrates military and civilian aircraft and related articles to potential partners, and to announce new policy developments.   Nisha Wadhawan, Aerospace & Defense Commercial Specialist U.S. Embassy - India, New Delhi Nisha.Wadhawan@trade.gov Top U.S. Export Destinations, India U.S. Aerospace & Defense Exports (USD) to SAARC 12-Month Totals (March 2021 - February 2022) The South Asian Association for Regional Cooperation (SAARC) member countries are: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka Visuals and data... Industry Trade Advisory Committee, Aerospace Equipment (ITAC1) The U.S. Trade Representative and the Secretary of Commerce (Secretary) have established a new four-year charter term ending in February 2026 for the Industry Trade Advisory Committees (ITACs) and are accepting applications from qualified individuals interested in serving as members. The nonpartisan, industry input provided by the ITACs is important in developing unified trade policy objectives and positions when the United States negotiates and implements trade agreements. The ITACs may also address other trade policy issues, e.g., government procurement and subsidies, in ad hoc working groups. How do I apply? To be considered for ITAC membership, interested persons should complete the ITAC Member Application, and other requested documents available at www.trade.gov/industry-trade-advisory-center. Any Questions regarding the ITAC's or the activities of ITAC 1 Aerospace Equipment please contact the Designated Federal Officers for the Committee: Robert McEntire, Senior International Trade Specialist Robert.McEntire@trade.gov (t)202-604-1152 Jonathan Alvear, International Trade Specialist Jonathan.Alvear@trade.gov (t)202-839-2360 Signature Events & Programs India Aerospace Trade Mission New Delhi and Hyderabad September 19-23, 2022 Join this mission to be introduced tp U.S. companies to India's aerospace ecosystem and find business partners. Why You Should Join:  - Gain market insights, make industry and government contacts, solidify business strategies, and advance specific projects.  - Learn about Indian market priorities, policy and regulatory changes, projects, and business opportunities, as well as strategies to navigate the business climate in India.  - Participate in one-on-one business appointments with pre-screened potential buyers, agents, distributors, or joint venture partners in New Delhi and Hyderabad with optional appointments available in Bengaluru and Mumbai.  - Participate in Networking Receptions. Click here for more information and contact Amy Magat or Oscar Magana to sign-up. Executive-Led Aerospace & Defense Trade Mission to the Middle East Israel, Saudi Arabia and Bahrain  November 6-11, 2022 The United States Department of Commerce, International Trade Administration (ITA), is organizing an Aerospace and Defense Trade Mission to the Middle East on November 6-11, 2022. This mission will be led by Arun Venkataraman, Assistant Secretary for Global Markets. The purpose of the mission is to introduce U.S. companies to the aerospace and defense ecosystem in key Middle Eastern countries, and assist delegate companies with finding business partners and exporting their products and services to the region. Mission delegates will have access to business development opportunities across Israel, Bahrain, and Saudi Arabia. Participating firms will gain market insight, make industry contacts, solidify business strategies, and advance specific projects, with the goal of increasing U.S. exports of products and services in the aerospace and defense sectors. The subsectors will depend on the nature of the market, potential demand, prospective government procurements, and other factors closer to the start of recruitment. The mission will include customized one-on-one business appointments with pre-screened potential buyers, agents, distributors, and joint venture partners. It will also include meetings with central, state, and local government officials and industry leaders, as well as networking events. Full details and sign-up information is located on our web site.  Please direct questions to Melissa Grosso or Fernando Jimenez. Farnborough 2022 Know Before You Go Webinar June 29, 2022, 10:00AM PST The U,S, Commercial Service and Kallman Worldwide will host a Know Before You Go Webinar in the lead up to Farnborough 2022.  This informational webinar will include a market briefing, information on show logistics and services offered in the USA Partnership Pavilion. The USA Partnership Pavilion has only a few spaces available. Don't miss your chance to meet decision makers from Europe and around the world at Farnborough 2022. Sign-up here... Questions on this program? Please contact: April Redmon Global Trade Events France, Jun. 13-17, 2022 Eurosatory Germany, Jun. 22-26, 2022 ILA Berlin - Pioneering Aerospace Turkey, Jun. 28-30, 2022 SEDEC U.K., Jul. 18-22, 2022 Farnborough Thailand, Aug. 29 - Sep. 1, 2022 Defense Security India, Sep. 5-7, 2022 Bengaluru Space Expo (BSE) 2022 Canada, Sep. 6-8, 2022 International Aerospace Week Poland, Sep. 6-9, 2022 International Defense Industry Exhibition (MSPO) U.K., Sep. 7-8, 2022 Space-Comm Expo South Africa, Sep. 21-25, 2022 Africa Aerospace & Defense (AAD) U.K., Oct. 18-20, 2022 MRO Europe Orlando, FL, Oct. 18-20, 2022 NBAA-BACE Kazakhstan, Oct. 19-21, 2022 Airport Expo 2022 U.K., Nov. 2-3, 2022 Three Counties Defence & Security Expo (3CDSE) Indonesia, Nov. 2-5, 2022 Indo Defence Mexico, Nov. 15-16, 2022 Mexico's Aerospace Summit France, Nov. 29 - Dec. 1, 2022 Aeromart Toulouse 2022 Australia, Feb. 28 - Mar. 5, 2023 Avalon Airshow Contact Us Our mission is to increase U.S. exports, enhance job creation, strengthen national security, promote and protect U.S. commercial interests abroad, and deliver customized solutions to ensure that U.S. businesses compete and win in the global marketplace. Export assistance is provided to U.S. companies who manufacture goods and/or provide services of at least 51% U.S. content. We assist companies in the following areas: International Trade Counseling, Business Matchmaking, Market Intelligence, Customized Services, and much more. Contact Us to find your local International Trade Specialist. Please direct newsletter questions to Erica Ramirez at Erica.Ramirez@trade.gov.  View as a webpage Tools To Win! Market Research by Country India Bangladesh Nepal Sri Lanka More... Export Statistics Monthly U.S. Civil Aircraft, Engines, and Parts Exports Exports (billions, USD) March 2021 6.01 April 2021 6.64 May 2021 5.79 June 2021 7.89 July 2021 6.95 August 2021 6.50 September 2021 6.69 October 2021 7.66 November 2021 7.18 December 2021 8.72 January 2022 3.38 February 2022 6.41 Top 20 U.S. Civil Aircraft, Engines, and Parts Export Destinations (March 2021 - February 2022) 12-Month Total Exports (billions, USD) Germany 7.84 France 7.10 Brazil 6.48 Canada 6.25 U.K. 5.39 China 4.68 Singapore 4.47 Mexico 4.39 Japan 3.10 Ireland 2.00 UAE 1.89 Turkey 1.82 Taiwan 1.71 Netherlands 1.12 India 1.11 Australia 1.01 Hong Kong 0.98 South Korea 0.90 Colombia 0.89   Advocacy in Action In 2021 The Advocacy Center Helped U.S. companies WIN BIG! U.S. Companies won foreign government contracts in 57 countries for $16Billion! These contracts support thousands of jobs across the U.S. and boast incredible U.S. technology and innovation being deployed around the world. 25% of active advocacy cases are supporting SME businesses - Contact us to learn how we can help your company. Click to learn about trillions of dollars in foreign government procurement opportunities. Join the Aerospace & Defense Exporter  mailing list.

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Kelly really likes Jim... So she asks Jim's friend out in an effort to get his attention. Ralf wants a new bike. He won't stop talking about a shiny red one.

Don't Get Cute With Energy Stocks By Carlton Neel, CEO, Chaikin Analytics Kelly really likes Jim... So she asks Jim's friend out in an effort to get his attention. Ralf wants a new bike. He won't stop talking about a shiny red one. It's perfect for him... But when Ralf gets to the store, he buys a used green bike because it was on sale. Charles sees a certain market sector is soaring. If he just puts his money to work in that space, he's sure to make a fortune... But when it comes time to buy, he instead finds a convoluted "backdoor strategy" for buying into the sector. Folks, I'm sure you know what I'm talking about... People want one thing. But in their pursuit of that one thing, they often do something else. Now, I don't know what you call this type of behavior. Coming up, I always heard it described as "getting cute"... "Getting cute" is the act of taking something simple and making it complicated. You could also describe it as "trying to outsmart the problem." This behavior is maddening. And it's particularly dangerous in investing. But through some quirk of human psychology, we're all guilty of doing it at one time or another. Well folks, I want to make this clear... Energy stocks are soaring. And maybe you're tempted to look for a fancy way to play the trend. But as I'll show you today, now is not the time for getting cute in this space... Recommended Links: Why Some Stocks Are SOARING Right Now Inflation just caused the worst one-day market drop since 2020. Prices are rising for just about everything: airfare, housing, gas... But the funny thing is, inflation could drive some stocks to the moon. The man who predicted the 2020 crash has compiled the top 5 stocks to buy now. Click here to learn more. Be Warned: A Specific Type of Market CRASH Is Coming Soon It's actually much bigger and more important than what happens to the Nasdaq or S&P 500. Yet some of the world's best investors are practically drooling in anticipation. Because this crash will create a slew of 100%-plus opportunities... backed by legal protections that stocks can only dream of. A top analyst tracking the story believes this could happen within months – and you must prepare now. Get the full story here right away. I'm sure you've seen gas prices hitting record highs. Heck, the average cost for a gallon of gas is more than $6.15 in California. And even on the low side, in states like Kansas and Georgia, it's still at roughly $4.20 per gallon.  Energy is simply the hottest sector in the market right now. So if you're an astute investor, you're likely looking to take advantage of that uptrend. And maybe you've spent time trying to find the perfect way to play it. Well, I'm here to tell you today... You don't need to get cute with energy stocks. You'll do well if you simply invest in the broad sector itself. Take a look.. This chart shows the Energy Select Sector SPDR Fund (XLE). This exchange-traded fund ("ETF") holds many of the world's most recognizable oil and gas companies... Now, as you can see in the above chart, XLE is up about 60% so far this year. That's outstanding for a five-month span. Any investor should be happy with that type of return. That's especially true given the broad market's struggles in 2022... Remember, as we've discussed recently, the S&P 500 Index is down roughly 13% this year. And the tech-heavy Nasdaq is down around 23% over the same span. So... you could try "getting cute" with energy stocks. You could try to find a "better way" to profit from this uptrend. But don't make investing harder than it needs to be... If you're optimistic about energy stocks, why not just buy the ETF that holds the biggest names and is already soaring? The future looks bright for energy stocks, too. XLE earns a "very bullish" rating from the Power Gauge. And the system doesn't rate any of the stocks in the ETF as "bearish" today. Could other energy opportunities outperform XLE? Absolutely. And in our paid publications, we use the Power Gauge to help us track down those opportunities. But if you're sitting on the sidelines, trying to find the perfect way to play the energy sector... stop. You don't need to get cute with energy stocks. The answer is right in front of you. Good investing, Carlton Neel Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.52% 8 18 4 S&P 500 -0.51% 103 291 103 Nasdaq -0.26% 10 65 24 Small Caps -1.28% 273 1102 515 Bonds -2.12% — According to the Chaikin Power Bar, Small Cap stocks have become Bearish. Major indexes are mixed. *  *  *  * Top Movers Gainers MOS +4.68% AMZN +4.40% CF +3.19% HAS +3.07% DXCM +3.06% Losers ILMN -7.20% CEG -6.79% EMBC -5.92% MOH -4.87% TECH -4.35% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close PVH, VEEV CPRI AI, ESTC, GME, MDB, NCNO, PSTG No earnings reporting today. Earnings Surprises HPQ HP Inc. Q2 $1.10 Beat by $0.08 CRM Salesforce, Inc. Q1 $0.98 Beat by $0.04 AMBA Ambarella, Inc. Q1 $0.44 Beat by $0.07 *  *  *  * Sector Tracker Sector movement over the last 5 days Discretionary +12.13% Information Technology +6.34% Communication +5.95% Financial +4.57% Industrials +3.88% Energy +3.50% Materials +3.09% Real Estate +1.89% Staples +1.54% Health Care +0.75% Utilities +0.38% *  *  *  * Industry Focus NYSE Technology Services 1 23 11 Over the past 6 months, the NYSE Technology subsector (XNTK) has underperformed the S&P 500 by -22.50%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #19 of 21 subsectors and has moved up 1 slot over the past week. Indicative Stocks RBLX Roblox Corporation SHOP Shopify Inc. SNAP Snap Inc. *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2022 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.