Self-Reliance in the Defense Sector: Shaping India’s Strategic Power

Published:

India’s Path to Self-Reliance in Defence: A Robust Indigenisation Roadmap and Growing Public-Private Collaborations

India is on a transformative journey towards self-reliance in its defence sector, a move that is not only strategic but also economically vital. The recent inauguration of the Tata-Airbus Final Assembly Line in Vadodara marks a significant milestone in this journey. As India’s first private military aircraft production facility, it is set to manufacture the C295 medium-lift tactical transport aircraft, with over 85% of its components produced domestically. This facility, sprawling across 50 acres, is expected to create 3,000 direct jobs and numerous indirect employment opportunities, showcasing the potential of public-private partnerships in bolstering the defence ecosystem.

The Growing Military Ecosystem

India’s military landscape has undergone a significant transformation in recent years, driven by increased military budgets, key institutional reforms, and a heightened focus on indigenisation. The government has set ambitious targets, pledging to more than double India’s annual military exports to ₹50,000 crore by 2028-29. This commitment reflects a broader strategy to enhance military capabilities and establish India as a defence powerhouse on the global stage.

Financial advisory firm Motilal Oswal has recognized this potential, launching India’s first index fund that offers exposure to listed defence stocks. This move underscores the growing interest and investment in the defence sector, which is poised for substantial growth.

Focus on Self-Reliance in Defence

The Indian government has prioritized indigenisation in its military sector, recognizing self-reliance as crucial for both strategic and economic reasons. Strengthening security infrastructure is vital to India’s geopolitical aspirations and to counter hostile actions from neighboring countries. The initiatives of Atmanirbhar Bharat and Make in India aim to mitigate risks associated with disruptions in critical supply chains, a lesson highlighted by Ukraine’s challenges during its conflict with Russia.

According to the Stockholm International Peace Research Institute (SIPRI), India was the second-largest importer of major arms globally between 2014 and 2018, accounting for 9.5% of global arms imports. Despite a reduction in arms imports in recent years, India remains one of the world’s largest arms importers, largely due to complex procurement processes and ongoing diversification efforts.

The Roadmap to Indigenisation

India’s roadmap for self-reliance is encapsulated in the Defence Acquisition Procedure (DAP) 2020, which mandates 50% indigenous content in procurement contracts. The introduction of a new procurement category, ‘Buy (Global – Manufacture in India),’ encourages foreign Original Equipment Manufacturers (OEMs) to establish manufacturing and maintenance facilities in India. The Ministry of Defence has also unveiled several positive indigenisation lists, specifying items that must be sourced exclusively from domestic suppliers. These lists encompass nearly 5,000 items currently imported by public sector units and the armed services.

Launched in August 2020, the Srijan Indigenisation Portal now lists over 34,000 imported items, with about a third of these being indigenised. This initiative reflects a concerted effort to reduce dependency on foreign suppliers and enhance domestic capabilities.

Advancements in Military Technology

India has made significant strides in military technology through public-private partnerships and international collaborations. The government has actively encouraged partnerships between foreign defence firms and Indian companies to bridge technology gaps and facilitate knowledge transfer. Recent agreements with global defence giants aim to provide advanced technical expertise across various domains, from aerospace to cybersecurity.

Moreover, government initiatives like Innovations for Defence Excellence (iDEX) are fostering a culture of innovation, encouraging startups and small to medium enterprises (SMEs) to contribute solutions tailored to India’s unique military needs. This collaborative approach not only accelerates capability-building but also enhances the competitiveness of Indian firms on the global stage.

Embracing Digital Transformation

In addition to traditional manufacturing, India is investing in the digitalisation of its defence sector. The integration of artificial intelligence (AI) and cybersecurity advancements is gaining momentum, with the development of AI-driven surveillance systems, autonomous drones, and smart weapons. The Ministry of Defence has established various AI research centres and collaborates with tech firms to incorporate machine learning and AI technologies into critical military functions. These digital transformations aim to enhance the precision and efficiency of India’s defence operations, enabling quicker responses to emerging threats.

Challenges to Indigenisation

Despite the progress made towards achieving self-reliance in the defence sector, several challenges persist. A long-term challenge lies in securing sustained and substantial investments in defence research and development (R&D). Additionally, there is a need to cultivate a comprehensive defence industrial ecosystem that can adequately serve the Indian military’s requirements.

Meeting the qualitative standards of the armed forces remains a significant hurdle. Often, defence manufacturers are only made aware of stringent specifications once a tender for a specific system or item is issued, complicating their ability to meet these standards. Past acquisition efforts to source from indigenous vendors have faced challenges, necessitating a concerted effort from the government to address limitations within India’s domestic industry.

Conclusion

As global tensions rise and the geopolitical landscape evolves, India’s defence industry must demonstrate its preparedness for a potentially volatile future. The country’s journey towards self-reliance in defence is not merely about reducing imports; it is about building a robust, innovative, and self-sustaining military ecosystem. With a clear roadmap, growing public-private collaborations, and a commitment to indigenisation, India is poised to emerge as a formidable player in the global defence arena, capable of defending its sovereignty and contributing to regional stability.

Related articles

Recent articles