Introduction
India's defense sector has undergone a remarkable transformation in recent years, with the government's concerted efforts to foster self-reliance and reduce dependence on imported defense hardware. Prime Minister Narendra Modi's visionary leadership and the Bharatiya Janata Party's (BJP) comprehensive vision for indigenous defense manufacturing have catalyzed this renaissance, propelling India towards a new era of defense self-sufficiency.
Congress’s Business of Imports
Prime Minister Narendra Modi, in an exclusive interview with ABP Network, criticized the Congress party, alleging that an "underground business" of weapons imports was prevalent in India during their tenure. PM Modi praised ABP News for uncovering significant delays in the export of BrahMos missiles during the UPA government from 2005 to 2014, stating that these delays hindered India's defense sector development by years. According to the ABP News report, the delays were due to the repeated need for political clearances.
PM Modi asserted that if these delays had not occurred, the country could have sold missiles worth millions of crores globally and advanced in developing new versions. In his interview with Rohit Saval, Romana Isar Khan, and Suman De, PM Modi claimed that a significant underground business of weapons procurement from foreign countries was conducted by a group favoring Western interests, preventing the Indian army from becoming self-reliant.
Addressing Decades of Stagnation
For decades, India's domestic defense industry had stagnated, leading to an over-reliance on imports to meet the strategic needs of the nation's armed forces. Corruption scandals further exacerbated these challenges, underscoring the urgent necessity for indigenous development and manufacturing capabilities, especially in the evolving global security landscape.
The BJP's 2014 manifesto outlined a comprehensive vision for revitalizing the defense sector, with the "Make in India" initiative spearheaded by Prime Minister Narendra Modi playing a pivotal role in stimulating domestic production and fostering innovation.
Laying the Foundation for Self-Reliance
Upon assuming office, the government embarked on a transformative trajectory, placing emphasis on enhancing domestic defense manufacturing capacity through the "Atmanirbhar Bharat" (Self-Reliant India) campaign. A series of bold decisions and policy reforms were initiated to realize this objective. Reforms in the Defense Procurement Policy, including the introduction of categories like "Buy Indian - Indigenously Designed, Developed and Manufactured" (IDDM), prioritized procurement from domestic sources. The introduction of the Defense Acquisition Procedure (DAP) 2020 and the release of indigenization lists further strengthened the domestic defense manufacturing ecosystem.
Budgetary Commitment
The government's commitment to fostering self-reliance in the defense sector is reflected in its budgetary allocations. In the financial year 2023-24, a record 75% of the defense capital procurement budget, approximately Rs. 1 lakh crore, was allocated to the domestic industry, marking a substantial increase from previous years.
The Ministry of Defense received a total budget allocation of Rs. 5.94 lakh crore, constituting 13.18% of the total budget, with a significant portion allocated to capital outlay for modernization and infrastructure development, amounting to Rs. 1.63 lakh crore. This unprecedented investment has fueled technological advancements and infrastructure development within the defense sector.
Catalyzing Investment and Infrastructure Development
To catalyze investment and promote indigenization, the government announced the establishment of two Defense Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu, poised to become engines of economic growth and defense manufacturing hubs.
Prime Minister Narendra Modi inaugurated the Hindustan Aeronautics Limited (HAL) Helicopter Factory in Tumakuru, Karnataka, the largest helicopter manufacturing facility in India, which will initially produce Light Utility Helicopters (LUHs). Additionally, the foundation stone for the manufacturing facility of 40 C-295 transport aircraft was laid by the Prime Minister in Vadodara, Gujarat, in October 2022, with the first Made-in-India C-295 aircraft expected to be delivered from September 2026.
Private Sector Participation
Private sector participation has been encouraged through initiatives like "Innovations for Defense Excellence" (iDEX), aimed at fostering indigenous innovation and technology development. The SRIJAN portal has been launched to facilitate the indigenization of defense items by Indian industry, with over 30,000 defense items uploaded onto the portal, inviting participation from industries, including MSMEs, in the indigenization process.
Moreover, the government has undertaken structural reforms within the defense sector, including the establishment of seven new defense companies from the Ordnance Factory Board, aimed at streamlining operations and enhancing efficiency within the defense manufacturing ecosystem.
Foreign Investment and Global Partnerships
To encourage foreign original equipment manufacturers to invest, manufacture, and export from India, foreign direct investment (FDI) policies in the defense sector have been liberalized. To date, companies engaged in the defense sector have reported FDI totaling Rs. 5077 crores, positioning India as a key player in the global defense market and meeting the requirements of the Indian Armed Forces.
Soaring Exports
The results of these concerted efforts are evident, with a significant increase in industrial licenses issued for defense manufacturing and a decrease in arms imports. India has not only reduced its dependence on imported defense hardware but has also witnessed a nearly 23-fold increase in defense exports since 2013-14, reaching an all-time high of Rs. 15,920 crore in FY 2022-23.
India's defense exports now span over 85 countries, including notable exports such as BrahMos missiles, Akash missile systems, radars, simulators, armored vehicles, and artillery guns. Indigenous defense equipment production surged to Rs. 1 lakh crore in 2022-23, further validating the government's commitment to promoting indigenous research and development in the defense sector.
Recognizing the remarkable progress made, the government has set ambitious export targets for the defense sector. Speaking at the NDTV Defense Summit in March 2024, Defense Minister Rajnath Singh highlighted the Modi government's prioritization of the defense sector and its target of achieving defense exports worth ₹50,000 crore by 2028-29.
Singh expressed confidence in achieving the future target, noting that the current financial year's defense exports are close to ₹20,000 crore. The government's support for startups in the defense sector, particularly those led by young entrepreneurs developing cutting-edge technology, has further bolstered innovation and growth within the industry. Financial assistance for these startups has been increased to ₹25 crore, stimulating technological advancements and fostering a vibrant ecosystem for defense manufacturing.
Conclusion
India's defense manufacturing renaissance, driven by Prime Minister Narendra Modi's visionary leadership and the government's unwavering commitment, has not only strengthened the nation's defense capabilities but has also generated numerous direct and indirect jobs, along with critical infrastructure development. This focus on indigenous manufacturing and technological advancement is a testament to India's determination to achieve self-reliance and assert its position as a global leader in defense manufacturing.
As India continues to make strides in this strategic sector, the nation's armed forces will be equipped with state-of-the-art, indigenously developed defense equipment, enhancing their operational capabilities and ensuring the safety and efficiency of their personnel. Moreover, the economic benefits of a thriving domestic defense industry will extend beyond national security, fostering innovation, creating employment opportunities, and driving sustainable economic growth.
Comments