The country is ready for a major bulk-up of its defence armoury
India-US deals will add substantial heft even as our private players help us attain self-sufficiency
Prime Minister Narendra Modi’s historic visit to the US came at a crucial juncture. It had several strategic dimensions, with diplomatic, economic, defence and technology tie-ups, etc. It is to be viewed in the backdrop of China’s geopolitical shenanigans, vaulting ambitions, quest to expand influence, threatening postures, and the Russia-Ukraine war. It is critical for India to acquire defence self-sufficiency, sustained indigenous deterrence and strike-weapon capabilities, while minimizing armament imports.
While the role of our defence public sector enterprises is crucial, it is important to encourage and support larger private sector participation. The role of ‘Make in India’ so far in achieving an ‘Atmanirbhar Bharat,’ especially for India’s defence industry, MSMEs and startups has been impressive. The government is making efforts to move away from a plain buyer-seller defence relationship with the US to one involving joint research, co-development and co-production of advanced defence platforms and technologies.
India has the world’s second-largest standing army, and is its largest arms importer. As per a recent report by the Stockholm International Peace Research Institute, India is the world’s top importer of military equipment, accounting for 11% of global weapon imports. For a country as large as India with vast land frontiers and hostile neighbours, it is critical to acquire self-reliance without delay.
Viewed thus, Modi’s historic visit last week to the US, where he was honoured as a State Guest and accorded the select privilege of addressing the US Congress a second time, acquires special strategic significance. Of historic value are defence deals designed to bolster Indian capabilities, increase strategic technology transfers and help us procure prized defence equipment.
The government is encouraging private sector collaborations with foreign manufacturers for technology transfers. During the Prime Minister’s visit, state-owned Hindustan Aeronautics Ltd entered a pact with General Electric to manufacture jet engines in India. This technology is considered the holy grail of advanced aviation and will help India leap ahead with indigenous aircraft manufacturing.
Our Defence Production and Export Promotion Policy, 2020 (DPEPP 2020), aims to achieve a turnover of ₹1.75 trillion, including export of ₹35,000 crore in aerospace and defence goods and services by 2025. In it, the private sector’s role is vital. The government has placed over 400 items of defence equipment on the positive indigenization list, throwing open our defence sector to greater private investment.
Several prominent Indian companies have achieved significant indigenous potential in various fields. For instance, the successful development of Defence Research and Development Organisation’s (DRDO) advanced towed artillery gun system (ATAGS) by Bharat Forge and Tata Group is testimony to Indian industry’s capability in developing our own advanced weapon platforms. With a range of 48km, ATAGS is counted among the world’s best artillery guns in the 155mm/52cal category. Leveraging its experience of designing it, Pune-based Bharat Forge claims to have developed a full suite of artillery platforms. Particularly noteworthy is the company’s defence subsidiary, Kalyani Strategic Systems Ltd, having bagged major export orders for artillery guns, a first-of-its-kind achievement for any Indian private company.
Similarly, L&T has invested over ₹8,000 crore in its defence operations to make indigenous missile systems, aerospace components and radar systems that play an important role in modern warfare.
In the context of modern warfare needs, India’s private sector must focus on future technologies like unmanned aerial vehicles (UAVs). Another private player, Adani Aerospace, is developing drones and counter-drone systems. It aims to implement artificial intelligence and swarm technology in this project. The Tata Group is also collaborating with startups to create drone-based solutions.
Engaging the private sector is critical for India to achieve and sustain self-reliance in defence preparedness. However, as the government is the country’s sole buyer, it is important to provide a sustained flow of orders for private investment and growth. Wider private sector participation will also encourage innovation and stimulate the growth of a robust defence industrial base, supporting MSMEs in this sector.
By leveraging the synergies of the research and innovation eco-system comprising DRDO, defence public sector units, private companies, MSMEs and start-ups, the country needs to undertake a ‘whole of nation’ approach towards the development of futuristic and critical systems/platforms in select domains. This will add heft to our defence preparedness.
In an era of geo-political tensions, the world will need India to help with peace and stability, and also counter balance rising threats in the Indo-Pacific region. Prime Minister Modi’s visit to the US can be said to have greatly added to these efforts.
Dhanendra Kumar is chairman of Competition Advisory Services, former secretary in the ministry of defence and former chairman of the Competition Commission of India.
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