The Indian private security industry is the largest in the world. The sector has seen tremendous growth in the past few years. It has become a leading industry in demand for private security personnel, not just in the corporate sector but also in residential households and real estate complexes. This industry significantly contributes to employment, the economy, and the fiscal health.
The Private Security Agencies (Regulation) Act, 2005 is enacted to regulate private security agencies to streamline their operations within a legal framework. The Act will be read along with the Private Security Agencies Central Model Rules, 2020. The Central Association of Private Security Industry (CAPSI) functions as a federal body representing the interest of India’s entire Private Security Industry (PSI). It operates through its State Chapters. An executive council governs each State Chapter in turn.
Looking at the size of the industry, the Indian personal security market was estimated at INR 57,000 crore (~USD 8.8 billion) in 2016. It was likely to touch INR 99,000 crore (~USD 15.2 billion) by 2020 and INR 1.5 lakh crores (~USD 23.1 billion) by 2022 (as per the latest industry estimates), according to a study released by FICCI in 2016. These numbers went ever higher, with the market touching INR 2.9 lakh crore (~USD 35.4 billion) in 2020 and INR 3.7 lakh crore (~USD 45.4 billion) in 2022. The data includes all skilled, semi-skilled, and unskilled personnel.