India has been a significant importer of defence equipment for many years. The country's defence requirements are met through imports due to the lack of indigenous capabilities and technology.
This over-dependence on foreign imports has made India vulnerable to geopolitical pressures and has led to significant outflows of foreign exchange.
To address this issue, the Indian government has been making efforts to reduce its dependence on foreign imports and become self-sufficient in the defence sector.
Heavily reliant on imports in the form of ammunition, missile systems and other weaponry, the scaling up of the domestic defence sector received the necessary attention only in the last half a decade. With the advent of the new policy of ensuring self-sufficiency in the form of Self-Reliance, there was an emphasis on the significance of reducing external dependence in all sectors including defence.
With a shift in strategy towards boosting locally-produced items, the aim of the campaign was to encourage indigenous products to be purchased, manufactured and supplied.
India's journey towards self-reliance in the defence sector began with the establishment of the Defence Research and Development Organization (DRDO) in 1958. The primary objective of the DRDO was to develop indigenous technology for the country's defence needs. Over the years, the DRDO has made significant progress in developing critical defence technologies such as missiles, aircraft, and radars.
In recent years, the Indian government has launched several initiatives to promote self-reliance in the defence sector. One such initiative is the 'Make in India' programme, which aims to promote domestic manufacturing of defence equipment. Under this programme, foreign defence companies are encouraged to set up manufacturing facilities in India, and domestic companies are incentivized to take up defence manufacturing. Another important initiative is the Strategic Partnership Model (SPM), which aims to Page 2 of 6 promote the development of a domestic defence industry. Under this model, the government selects strategic partners for specific defence projects and provides them with long-term support to develop indigenous capabilities.
The SPM is expected to play a crucial role in developing a robust domestic defence industry in India. Towards that, governments have taken several policy initiatives bringing in key reforms to encourage indigenous design, development and manufacturing of defence equipment. Promoting defence manufacturing and technology, priority has been accorded towards the procurement of capital items of Buy Indian (IDDM) category from domestic sources under the Defence Acquisition Procedure 2020. A total of 411 items of services have been notified through 4 Positive Indigenization Lists and an additional 3738 items of DPSUs through 3 Positive Indigenization Lists as well, through which an embargo on imports beyond the timelines indicated against them shall be placed.
Through these measures, the defence industry is now capable of manufacturing a wide variety of high-end requirements like tanks, fighter aircraft, armoured vehicles, warships, submarines, special-purpose steels and a variety of other ammunition as well. Apart from this other initiatives taken are Simplification of Licensing Process: To encourage investment and FDI, the government has simplified the licensing process with a single-window clearance model and longer validity periods. Initiatives like the DefSpace Mission and iDEX (Innovation for Defence Excellence) scheme have further engaged MSMEs and DPSUs, fostering technology development and innovation in the defence and aerospace sector.
Defence Industrial Corridors: The government has launched the SRIJAN portal and established Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu. These corridors attract investments in the aerospace and defence sector, facilitating indigenization of the MSME sector and technology transfer. Collaborative Ecosystem: Reorganizing public defence companies and strengthening ties with academic institutions and research organizations have revitalized the defence ecosystem. Increased allocation of budget towards industry-led research and development has driven innovation and collaboration. Regular engagements with Page 3 of 6 MSMEs, start-ups, academia, and innovators have created a supportive environment for technological advancements. Indigenous Defence Technologies: India has made significant strides in developing critical defence technologies. The successful development and testing of missile systems like Agni, Prithvi, and BrahMos exemplify the country's progress. Furthermore, India has achieved noteworthy milestones in aircraft development, including the Light Combat Aircraft (LCA) and the Advanced Medium Combat Aircraft (AMCA). The indigenized equipments are made from locally available resources.
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