Self-reliance in the Defence Sector

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• Recently concluded DefExpo22 exposed the need for India to acquire self-reliance in the defence sector.

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• Need of self-reliance in the defence sector:
  • National security:
    • Even as India aspires to become a $5-trillion economy, it is evident that it faces many national security inadequacies. 
  • Dependency on foreign suppliers:
    • The high dependency index on foreign suppliers (traditionally the former USSR now Russia) for major military inventory items is stark. 
    • This dependency induces a macro national vulnerability and dilutes India’s quest for meaningful and credible strategic autonomy. 
  • Combat capacity:
    • Furthermore, the current gaps in combat capacity expose the chinks in the Indian ability to safeguard core national security interests. 
  • Meeting targets:
    • The government has set a defence export target of $5 billion (Rs 40,000 crore).
      • This is an ambitious target and will demand mission-mode resolve to be realised.
• India’s progress in recent years:
  • India’s defence exports have grown eight times in the last five years. 
  • India is exporting defence materials and equipment to more than 75 countries of the world. 
  • In 2021-22, defence exports from India reached $1.59 billion (about Rs 13,000 crore). 

Challenges

• Global issues:
  • Unexpected exigencies such as the Russian invasion of Ukraine and other factors including the Covid that disrupted the global economy and related supply chains. 
• Weakening of rupee:
  • The global challenges are further exacerbated by a weakening rupee add to the challenges faced by the Indian defence manufacturing ecosystem.
• Manufacturing sector:
  • India missed the industrial design and manufacturing bus, a national competence demonstrated by nations like South Korea and China, over the last five decades. 
  • Technological advances have made the design and manufacture of the semiconductor chip the new currency of national prosperity and military power. 
  • The US and China are now locked in intense competition in this domain and India is yet to acquire a profile that would be deemed relevant.

Aatmanirbhar in defence production

• Make-I Category:
  • About: 
    • Under the Defence Acquisition Procedure 2020, ‘Make’ Category aims to achieve self-reliance by involving greater participation of Indian industry.  
    • Projects involving design and development of equipment, systems, major platforms or upgrades thereof by the industry can be taken up under this category. 
  • Financial Support:
    • The Ministry of Defence will provide financial support up to 70% of the total cost of prototype development.
• Make-II Category:
  • It is funded by industry with assured procurement. The following platform has been listed –
    • Anti-jamming Systems for Multiple Platforms
• Special Purpose Vehicle (SPV) Model:
  • Under this, private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with the Defence Research and Development Organisation (DRDO) and other organisations.  
  • Following two platforms have been identified under this category.
    • Long Range Unmanned Aerial Vehicles (UAVs) [High Altitude Long Endurance (HALE)]
    • Indian Multi Role Helicopter (IMRH)
• iDEX:
  • Projects of Start-ups, MSMEs etc. involving high-end innovation would be pursued under the iDEX category and the following platform has been selected under this category –
    • Low Orbit Pseudo Satellites.

Way Ahead

• To become a major defence manufacturer, India needs to reexamine its structure of governing defence production, as the Chinese did in 2000.
• Progressively changing this techno-strategic landscape in India’s favour should be accorded the highest priority in the national policy debate.
  • This will give a chance to employing more people in India and thereby increasing the Growth parameters of the Economy.

Source: IE