A Success Story In The Defense Market; Growth And Challenges Of Self-Sufficient India

The then Chief of Army Staff General Bipin Rawat stated this while addressing the 41st DRDO Conference held in October 2019 .

“India is one of the largest importers of arms and ammunitions and to make such a statement even after 70 years of independence is nothing short of proud. We will surely fight and win the wars to come with indigenous weapon systems”.

This past week, another statement made by current Army Chief General Manoj Pandey was noteworthy. The Army Chief’s statement was that the Army is collaborating on 230 contracts with 340 indigenous defense industries to develop defense equipment and defense systems for military use. These 230 contracts worth Rs 2.5 lakh crore are to be completed by 2025.

The Indian Navy had issued a statement ahead of the Senior Commanders’ Conference held in October last year. The Indian Navy indicated that commanders will undertake a detailed action program to increase indigenization through ‘Make in India’ with the aim of achieving ‘self-sufficiency’ by 2047. “We are committed to our promise to the nation that we will be self-sufficient by 2047, and for that we need the support of the industrial world as well.” This statement made last month by the current Chief of the Navy, Admiral Hari Kumar, underlines that the Indian Navy is also determined to achieve self-sufficiency.

In an interview to Indian Aerospace and Defense in October last year, Air Chief Marshal VR Chaudhary said this.

“The Air Force aims to create an environment that fosters research institutions, higher education institutions, start-ups, industrial entities and innovative talent to enable innovation and technological development in the field of defense (defense needs).”

The Indian Armed Forces have recognized the need to support indigenous industries in the defense sector. Increasing imports and relying on foreign technology to build military capabilities, outsourcing national security, is dangerous. That is unacceptable. Chief of Defense Staff General Anil Chauhan said that a big lesson has been learned from the war in Ukraine that the country cannot depend only on weapons imported from outside countries.

Recent conflicts teach us the important lesson that a country should be self-sufficient in defence. We need weapons and systems designed for the specifics of our terrain. Ukraine is heavily dependent on the West for its defense needs. Delays in arms delivery have led to Ukraine’s backlash on the battlefield. The weapons given to Ukraine by the West were designed to be fired from anywhere. But they failed to utilize its full potential. That may be one of the reasons why America’s Abrams tanks were not successful.

The U.S. Congress has temporarily halted the supply of weapons to Ukraine, putting them in crisis. Europe could not satisfy all the demands of Kiev. This was good for Russia. The Russian defense industry was able to meet most defense needs. It increased their military strength. This backfired for North Korea, Iran, China, etc.

Manufacturers can at any time put pressure on the countries receiving the weapons. Either they may not be given arms again. Otherwise, equipment parts may not be available at the time of need. Pakistan’s F-16 fighter jets are being monitored by the US around the clock. Only from there they can buy weapons. DRDO developed one of its own after the US denied GPS services during the Kargil war. Thus was born Navigation for Indian Constellations (Navik).

Apart from this, the cost of importation is very high. If these are manufactured in India, jobs will be created and the economy will be strengthened. Apart from this, there will be an end to corruption in defense agreements.

In 2014, self-reliance in the field of defense will begin. Over the years it has gained new energy. By opening the door to the private sector, the Ordnance Factory Board monopolized India’s defense manufacturing sector. Defense production in the country has reached new heights. The defense manufacturing sector, which was Rs 740 crore in 2017, will reach Rs 1 lakh crore in 2023.

India’s defense exports increased from Rs 686 crore in FY 2013-14 to Rs 16,000 crore in FY 2022-23. Last November, Prime Minister Narendra Modi announced that India aims to increase its defense exports to 35,000 crores in the next five years. Through this, the aim is to make India a major defense exporting country.

India has also been able to reduce costs by procuring defense equipment. The cost of defense procurement from abroad has been reduced from 46 per cent in 2018-19 to 36.7 per cent in December 2022. 75 percent of the defense procurement budget was through domestic resources in the last financial year. According to a press release released by the central government, 68 percent was like this in the previous year. In the last three financial years, 122 defense equipment deals were signed. It is also noteworthy that 100 of them are with local suppliers.

Innovations for Defense Excellence (IDX) aimed at developing advanced technology has been a huge success. The government has created confidence in the domestic industry by releasing the indigenous defense production list. The government has published the details on the SRIJAN portal. So far there are 30,000 items in the list.

India is also making parallel efforts to create awareness among global manufacturers about its manufacturing facilities. FDI in this sector increased from 49 percent to 74 percent. SAAB was the first company to develop the Carl Gustaf M4 anti-tank rocket system. So far, 5077 crore rupees have been received through foreign investment in the field of defence.

BrahMos, jointly developed by India and Russia, is being tested by various countries. Some have also entered into agreements with India. Other prominent defense items exported are Akash missile, radars, military vehicles and firearms.

It also exports Apache helicopters, wings for the F-16, and C-295 medium lift transport aircraft. Lockheed Martin has selected India as the assembly-marketing center for its C130J. It is the only center of its kind outside the United States. This aircraft is serving around seven countries.

Hyderabad-based Adani-Elbit Advanced Systems India Ltd, a joint venture between Adani Defense and Aerospace and Israel’s Elbit Systems, has delivered 20 UAVs to Israel.

India plans to open up its defense supply chain to the US and thereby link its defense markets to the global supply chain of Indian companies. The Society of Indian Defense Manufacturers (SIDM), an association of the Indian defense industry, aims to form an Export Promotion Council. The aim is to increase exports. This is in addition to the Indian government’s move to organize defense exhibitions etc.

India is facing two setbacks in this field. But both can go hand in hand. Technology is the need of the day. The need is to develop technology suitable for the modern battlefield. Development of such devices is possible only from domestic R&Ds.

DRDO’s budget is steadily increasing. And steps are being taken to reorganize the organization. These steps are based on the K Vijayaraghavan Committee report. Their future programs are managed from the Prime Minister’s Office. But the R&D ratio in India is very low. The Indian private defense sector is in its infancy. This also requires investment in R&D.

R&D is a risky business. Sometimes it does not give the expected results. However, Defense Minister Rajnath Singh had said that it is one of the basic elements of the development of all countries while addressing the North Tech workshop last September.

If India’s defense needs are addressed domestically, more funds will be needed for R&D. If R&D is successful, the scientific community will be more connected to users and the academic community. All this requires a government intervention. If the product improves, the global demand will also increase.

In ten years we have come a long way in this field. Indian industry has proven its mettle. But we need support. The defense industry still has a long way to go. There may be obstacles. But all these should be broken and reach the global level. The government should take a pro-active approach and join hands for this.

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