The decade spanning 2014 to 2024 has witnessed a profound metamorphosis in India's approach to defence manufacturing. This period signifies a decisive break from the reluctance and reliance on external sources that characterized the nation's defence posture in prior years.
Catalyzed by the Modi government's clarion call for "Aatmanirbharta" (self-reliance), a series of bold reforms have reshaped the landscape of India's defence sector.
The Impetus for Change
The India-China border conflict of 2020, along with escalating global tensions stemming from the Russia-Ukraine war and the Israel-Hamas conflict, served as stark reminders of the imperative for robust national self-sufficiency in defence.These events galvanized the government's determination to bolster India's indigenous defence capabilities.
Policy Reforms: Enabling Self-Sufficiency
The Defence Procurement Procedure of 2016 underwent a significant overhaul, resulting in the Defence Acquisition Procedure 2020. This revised framework prioritized increased engagement from the private sector, fostering the domestic design, development, and production of cutting-edge defence equipment.The aerospace and defence industry in India represents a substantial market, valued at approximately ₹80,000 crore per Ministry of Defence (MoD) estimates. Notably, the private sector's contribution to this domain has expanded significantly, reaching ₹17,000 crore.
Boosting Indigenous Production
To reduce reliance on imports, the government enacted positive indigenisation lists, detailing spares, components, and sub-systems that must be sourced domestically.Furthermore, the enhancement of FDI (Foreign Direct Investment) in the defence sector has attracted substantial inflows, totaling ₹2,871 crore since 2014 – a marked increase from the preceding decade's figure of ₹1,320 crore.
The Transformation of India's Defence Industry
These transformative policy shifts have revitalized India's defence manufacturing sector. Obsolete weaponry is steadily being replaced by advanced, indigenously developed technologies.Collaborations between defence vendors and the armed forces have deepened, and procedural mechanisms now prioritize support for domestic suppliers.
A particularly promising development is the emergence of numerous start-ups within the defence and space sectors. Previously hampered by financial hurdles, these innovative ventures now hold the potential to evolve into tomorrow's major defence corporations.
Innovation and International Collaboration
Strategic initiatives such as Innovation for Defence Excellence (iDEX) and the India US Defence Acceleration Ecosystem (INDUS-X) have laid the groundwork for a vibrant defence innovation ecosystem.Additionally, the MoD's pivotal structural reforms, including the creation of the Chief of Defence Staff position and the Department of Military Affairs, ensure optimized resource allocation and enhanced cooperation among the three branches of the armed forces.
Surging Exports: A Sign of Global Recognition
India's unwavering commitment to self-reliance is evident in the record-breaking defence exports achieved in FY 2023-24, reaching ₹21,083 crore (approximately $2.63 billion).This impressive figure represents a 32.5% surge from the previous fiscal year and a staggering 31-fold increase compared to FY 2013-14.
Countries such as Armenia and the Philippines have acquired Indian-made rocket systems and BrahMos missiles, with numerous other nations expressing keen interest in India's diverse range of defence products.
Challenges and the Road Ahead
Despite these remarkable strides, certain structural inefficiencies and procedural delays remain within the government's defence architecture. To fully harness the nation's potential in this sphere, Defence Reform 2.0 is urgently needed to overcome these obstacles.Conclusion
The years between 2014 and 2024 have heralded a new era for India's defence manufacturing sector.Guided by the principles of "Aatmanirbharta", the nation has embarked on a path of self-sufficiency and technological prowess.
As India's defence industry continues to mature and innovate, it is poised to secure the nation's strategic interests and emerge as a leading global player in defence production.
