- The article discusses India’s defense modernization under the Atma Nirbhar Bharat initiative, emphasizing indigenization and innovation in defense production.
- Key facts highlight a projected $138 billion in defense orders over the next decade.
Significance of Defence Indigenisation
Strategic Autonomy and National Security
- Reduces reliance on foreign arms, allowing quicker responses during crises.
- Ensures availability of critical platforms during sanctions or supply chain disruptions.
- 65% of defense equipment is domestically manufactured.
Economic Growth and Industrial Capability
- Defence indigenization promotes local manufacturing, supporting MSMEs and startups.
- Defence production rose to ₹1.27 lakh crore in FY24, a 174% increase from FY15.
- Over 16,000 MSMEs and 430 licensed companies involved in defense production.
Export Potential and Global Defence Diplomacy
- Defence exports reached ₹21,083 crore in FY24, a 30-fold increase since FY14.
- India now exports to over 100 countries, enhancing bilateral defense cooperation.
Resilience Against Supply Chain Shocks
- Building indigenous capabilities mitigates vulnerabilities from global disruptions.
Technological Innovation and R&D Ecosystem
- Indigenization encourages a homegrown defense R&D ecosystem.
- Platforms like iDEX and ADITI enhance military needs and academic innovation.
Inclusive Development
- Defence corridors drive decentralized growth, particularly in underdeveloped regions.
- Significant investments in UP and TN Defence Corridors.
Key Roadblocks in Defence Modernisation
Technological Gaps
- Reliance on foreign suppliers for core technologies (e.g., engines, semiconductors).
- Shortfalls in strategic platforms and critical components.
Limited Private Sector Participation
- Private sector contributes only 21% to defense production; barriers include long gestation periods and bureaucratic hurdles.
Bureaucratic Delays
- Complex procurement processes delay modernization efforts; lengthy timelines affect operational readiness.
Inadequate R&D Investment
- Low defense R&D spending compared to global standards; disconnect between innovation and production.
Import Dependency
- Continued importation of critical systems exposes vulnerabilities during geopolitical crises.
Testing Infrastructure Bottlenecks
- Insufficient testing and certification facilities slow down the deployment of indigenously developed systems.
Government Initiatives
Make in India (Defence)
- Promotes domestic manufacturing and reduces import dependency.
Defence Acquisition Procedure (DAP) 2020
- Introduces categories emphasizing indigenous content and domestic procurement.
Defence Production and Export Promotion Policy (DPEPP) 2020
- Targets ₹1.75 lakh crore turnover and ₹35,000 crore exports by 2025.
Innovations for Defence Excellence (iDEX)
- Supports start-ups and MSMEs in defense innovation.
SRIJAN Portal
- Lists imported items for indigenization; over 14,000 items indigenized by February 2025.
Measures for Enhancement
Strengthening R&D and Technology Ecosystem
- Boost investment in defense R&D and establish incubation hubs.
Deepening Private Sector Integration
- Streamline procurement frameworks and support MSMEs in technical processes.
Accelerating Acquisition Reforms
- Compress procurement timelines and improve project management.
Enhancing Testing Infrastructure
- Modernize facilities for quick validation of new technologies.
Strategic Partnerships with OEMs
- Pursue co-development and joint production partnerships for technology transfer.
Way Forward
- India’s defense indigenization and modernization are crucial for achieving strategic autonomy and economic growth.
- Addressing challenges through enhanced R&D, streamlined processes, and industry collaboration is essential for a robust defense ecosystem.