Thanks to policies that encourage and facilitate research, design, development and production of domestic weapons and equipment, India has successfully transformed its defence industry from being mainly dependent on imports to an indigenisation strategy. This has allowed the country to both enhance its strategic autonomy and become a "defence manufacturing centre" of the world.
Indigenisation strategy
The Indian government's policy of indigenisation strategy to replace imports has boosted the country's defence industry. The "Make in India" initiative in recent years has promoted domestic defence production capacity, supported research and development; at the same time, the policy of temporarily banning the import of certain types of weapons and equipment has further promoted the indigenisation process. In a short span of time, the introduction of indigenously produced weapons and equipment will not only help the Indian Army enhance its strategic autonomy but also enhance its combat readiness and respond to growing regional and international challenges.
Indigenisation is now a major focus of India’s military modernisation efforts and new arms procurement policy. Previously, India was largely dependent on foreign suppliers, not only for technological platforms, equipment and weapon systems, but also for maintenance and upkeep. This meant that even in crisis situations, the Indian Army had to rely on foreign replacements. The lessons learned from history, especially when the Indian Army’s urgent needs were denied by foreign countries, have been a key factor of the country’s decision to pursue self-reliance in arms production and defence modernisation over the years. In addition, promoting indigenisation in weapons production also reduces the economic cost pressure that the country has to bear due to increasing arms imports to meet the needs of military modernisation.
India believes that in order to be self-sufficient in any field of weapons manufacturing industry, it is imperative to have technology platforms, core systems as well as components and subsystems with completely original technology. Therefore, New Delhi has gradually shifted its focus from reverse engineering to core technology development, weapons systems must be designed, developed, manufactured, then maintained and repaired in India. Along with that, the Indian government has allocated a separate budget that has been increasing over the years to purchase domestically produced weapons. In the fiscal year 2023, India spent up to 75% of its defence procurement budget on purchasing weapons from domestic manufacturers. This reflects India's goal of self-reliance in defence production, as this is an unprecedentedly high proportion compared to previous fiscal years (in 2020, 2021 and 2022, the proportions were only 58%, 64% and 68%, respectively). The Indian government has also implemented many other policies to promote self-reliance in the defence industry, such as increasing foreign direct investment from 49% to 74%, or banning the import of hundreds of foreign-made weapons.
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| The Tejas jet fighter of the Indian Air Force (Photo: vov.vn) |
The domestic arms procurement policy is an important driving force for the boom of the Indian defence industry. Previously, to meet the needs of defence equipment, India relied heavily on foreign suppliers with about 65% - 70% of weapons and equipment being imported. Currently, about 65% of India's weapons and equipment are domestically produced, ranking 4th in the Indo-Pacific region in terms of self-sufficiency in weapons production. The Indian defence industry has succeeded in producing the Tejas light fighter, the INS Vikrant aircraft carrier, the Arihant nuclear submarine, the Leander destroyer, and the Arjun main battle tank. In particular, the Indian Navy and Air Force are said to be absolutely successful in designing, testing, building, and putting into use domestic weapons with more than 130 warships and 250 aircraft, forecast to increase to about 175 warships and 400 aircraft by 2035. The INS Vikrant aircraft carrier, which India built itself, has reached full operational status, putting India into the elite group of countries capable of building and deploying aircraft carriers. With its persistent pursuit of indigenisation in arms procurement, India has taken its defence industry to new heights in terms of capacity, capability and growth.
Boosting export
Greater indigenisation of weapons is also a prerequisite for the Indian government’s defence export drive, with several initiatives and policies to promote defence exports and initiate defence industry reforms over the past decade. Export procedures have been simplified with comprehensive online licensing to reduce delays and facilitate ease of doing business. The government has issued a one-time, general licence for exports of “Parts and Components/Transfer of Technology/Major Vehicles and Equipment”.
The Indian defence industry has demonstrated its capability in designing and developing weapons, with 100 companies exporting defence products. In the fiscal year 2023, India’s defence exports crossed $2.5 billion, increased 32.5% over the previous year. This spectacular growth reflects the concerted efforts and strategic initiatives undertaken by the Indian Ministry of Defence to enhance defence manufacturing capabilities. India’s success in defence exports is largely due to the efforts of both public and private enterprises. Indian defence industry enterprises have demonstrated commendable innovation, efficiency and quality standards, thereby enhancing the country’s reputation as a reliable supplier of defence equipment and technology. Major contributors to India’s defence export portfolio include light fighter aircraft, armed helicopters, offshore patrol vessels, avionics, coastal surveillance radar systems, infantry weapons, etc. Most recently, India has successfully exported the BrahMos supersonic shore-based missile system to the Philippines and the AKASH air defence missile system to Armenia.
At the Aero India 2023 defence exhibition, India called for investment in the defence sector with an ambitious target of exporting military hardware worth USD 5 billion by 2025. The increase in defence exports and the participation of 104 countries at Aero India 2023 is evidence that India's defence manufacturing sector is flourishing. This achievement demonstrates India's capability and determination towards the 'Make in India' strategy. It also shows that reforms in this sector have been yielding good results. The Government of India will continue to support efforts to make the country a 'defence manufacturing hub' of the world.
With the share of defence manufacturing revenue increasing from 02% in the fiscal year 2017 to 15% in the fiscal year 2023, defence exports have increased 23 times, showing that India’s defence industrial design and development capabilities have now reached nearly 100 countries. Such spectacular successes have enabled India to be more active in seeking new markets in friendly countries and aim to establish long-term relationships in the military hardware sector. As a result, Indian defence companies are increasingly competing with global companies in various markets, including Central Europe, Africa and Southeast Asia. India’s growing importance in the global arms market is a testament to the country’s defence industry’s ability to transform and compete internationally.
Diversifying cooperation
India is currently expanding its military technology cooperation with a number of countries around the world, at both government and industry levels, through joint working groups, technology collaboration, joint ventures, information sharing, and other activities. The growing challenges in the Indo-Pacific region and competition in new areas of defence are creating opportunities, as well as new conditions for India to enhance cooperation in the defence industry. Therefore, India has increasingly made better use of opportunities for technological cooperation with friendly countries in areas such as artificial intelligence, space and underwater technology, unmanned technology, and cyber security.
In recent years, defence cooperation has increasingly emerged as a key pillar in India's strategic relations with foreign governments. Accordingly, India expects to integrate its defence industry with the global market through supply chain workshops with leading foreign OEMs or facilitate direct interactions with foreign governments and armed forces. In 2023 alone, the Indian defence industry interacted with 25 countries.
India continues to maintain cooperation with the Russian defence industry groups, especially in the production of BrahMos supersonic cruise missiles, Mango anti-tank ammunition, AK-203 assault rifles. Since then, India has been able to master and successfully export these advanced weapon systems in the global market. Technology is also at the heart of the relationship between India and the US. The India-US Cooperation Initiative on “Critical and Emerging Technologies” announced on 31 January 2022, is in line with New Delhi’s goal of strengthening military, technological and supply chain links with partner countries. The area of interest to India is the production of jet engines for its fighter aircraft. In addition, cooperation in artillery weapons technology, armoured combat vehicles, naval radars, quantum computing and artificial intelligence is also prioritised by India to develop the domestic defence industry, serving defence and export purposes. With the right policies and investment budget, the Indian defence industry has achieved new developments, playing an increasingly pivotal role in the country’s economic growth and security. The Indian defence industry also has great potential to attract foreign investment and enhance domestic technological capabilities. Defence industry reform initiatives have helped India gradually become a self-sufficient defence manufacturer and a major exporter of weapons in the global market.
Senior Colonel DANG DONG TIEN
Thanks to policies that encourage and facilitate research, design, development and production of domestic weapons and equipment, India has successfully transformed its defence industry from being mainly dependent on imports to an indigenisation strategy. This has allowed the country to both enhance its strategic autonomy and become a "defence manufacturing centre" of the world.
Indigenisation strategy
The Indian government's policy of indigenisation strategy to replace imports has boosted the country's defence industry. The "Make in India" initiative in recent years has promoted domestic defence production capacity, supported research and development; at the same time, the policy of temporarily banning the import of certain types of weapons and equipment has further promoted the indigenisation process. In a short span of time, the introduction of indigenously produced weapons and equipment will not only help the Indian Army enhance its strategic autonomy but also enhance its combat readiness and respond to growing regional and international challenges.
Indigenisation is now a major focus of India’s military modernisation efforts and new arms procurement policy. Previously, India was largely dependent on foreign suppliers, not only for technological platforms, equipment and weapon systems, but also for maintenance and upkeep. This meant that even in crisis situations, the Indian Army had to rely on foreign replacements. The lessons learned from history, especially when the Indian Army’s urgent needs were denied by foreign countries, have been a key factor of the country’s decision to pursue self-reliance in arms production and defence modernisation over the years. In addition, promoting indigenisation in weapons production also reduces the economic cost pressure that the country has to bear due to increasing arms imports to meet the needs of military modernisation.
India believes that in order to be self-sufficient in any field of weapons manufacturing industry, it is imperative to have technology platforms, core systems as well as components and subsystems with completely original technology. Therefore, New Delhi has gradually shifted its focus from reverse engineering to core technology development, weapons systems must be designed, developed, manufactured, then maintained and repaired in India. Along with that, the Indian government has allocated a separate budget that has been increasing over the years to purchase domestically produced weapons. In the fiscal year 2023, India spent up to 75% of its defence procurement budget on purchasing weapons from domestic manufacturers. This reflects India's goal of self-reliance in defence production, as this is an unprecedentedly high proportion compared to previous fiscal years (in 2020, 2021 and 2022, the proportions were only 58%, 64% and 68%, respectively). The Indian government has also implemented many other policies to promote self-reliance in the defence industry, such as increasing foreign direct investment from 49% to 74%, or banning the import of hundreds of foreign-made weapons.
|
| The Tejas jet fighter of the Indian Air Force (Photo: vov.vn) |
The domestic arms procurement policy is an important driving force for the boom of the Indian defence industry. Previously, to meet the needs of defence equipment, India relied heavily on foreign suppliers with about 65% - 70% of weapons and equipment being imported. Currently, about 65% of India's weapons and equipment are domestically produced, ranking 4th in the Indo-Pacific region in terms of self-sufficiency in weapons production. The Indian defence industry has succeeded in producing the Tejas light fighter, the INS Vikrant aircraft carrier, the Arihant nuclear submarine, the Leander destroyer, and the Arjun main battle tank. In particular, the Indian Navy and Air Force are said to be absolutely successful in designing, testing, building, and putting into use domestic weapons with more than 130 warships and 250 aircraft, forecast to increase to about 175 warships and 400 aircraft by 2035. The INS Vikrant aircraft carrier, which India built itself, has reached full operational status, putting India into the elite group of countries capable of building and deploying aircraft carriers. With its persistent pursuit of indigenisation in arms procurement, India has taken its defence industry to new heights in terms of capacity, capability and growth.
Boosting export
Greater indigenisation of weapons is also a prerequisite for the Indian government’s defence export drive, with several initiatives and policies to promote defence exports and initiate defence industry reforms over the past decade. Export procedures have been simplified with comprehensive online licensing to reduce delays and facilitate ease of doing business. The government has issued a one-time, general licence for exports of “Parts and Components/Transfer of Technology/Major Vehicles and Equipment”.
The Indian defence industry has demonstrated its capability in designing and developing weapons, with 100 companies exporting defence products. In the fiscal year 2023, India’s defence exports crossed $2.5 billion, increased 32.5% over the previous year. This spectacular growth reflects the concerted efforts and strategic initiatives undertaken by the Indian Ministry of Defence to enhance defence manufacturing capabilities. India’s success in defence exports is largely due to the efforts of both public and private enterprises. Indian defence industry enterprises have demonstrated commendable innovation, efficiency and quality standards, thereby enhancing the country’s reputation as a reliable supplier of defence equipment and technology. Major contributors to India’s defence export portfolio include light fighter aircraft, armed helicopters, offshore patrol vessels, avionics, coastal surveillance radar systems, infantry weapons, etc. Most recently, India has successfully exported the BrahMos supersonic shore-based missile system to the Philippines and the AKASH air defence missile system to Armenia.
At the Aero India 2023 defence exhibition, India called for investment in the defence sector with an ambitious target of exporting military hardware worth USD 5 billion by 2025. The increase in defence exports and the participation of 104 countries at Aero India 2023 is evidence that India's defence manufacturing sector is flourishing. This achievement demonstrates India's capability and determination towards the 'Make in India' strategy. It also shows that reforms in this sector have been yielding good results. The Government of India will continue to support efforts to make the country a 'defence manufacturing hub' of the world.
With the share of defence manufacturing revenue increasing from 02% in the fiscal year 2017 to 15% in the fiscal year 2023, defence exports have increased 23 times, showing that India’s defence industrial design and development capabilities have now reached nearly 100 countries. Such spectacular successes have enabled India to be more active in seeking new markets in friendly countries and aim to establish long-term relationships in the military hardware sector. As a result, Indian defence companies are increasingly competing with global companies in various markets, including Central Europe, Africa and Southeast Asia. India’s growing importance in the global arms market is a testament to the country’s defence industry’s ability to transform and compete internationally.
Diversifying cooperation
India is currently expanding its military technology cooperation with a number of countries around the world, at both government and industry levels, through joint working groups, technology collaboration, joint ventures, information sharing, and other activities. The growing challenges in the Indo-Pacific region and competition in new areas of defence are creating opportunities, as well as new conditions for India to enhance cooperation in the defence industry. Therefore, India has increasingly made better use of opportunities for technological cooperation with friendly countries in areas such as artificial intelligence, space and underwater technology, unmanned technology, and cyber security.
In recent years, defence cooperation has increasingly emerged as a key pillar in India's strategic relations with foreign governments. Accordingly, India expects to integrate its defence industry with the global market through supply chain workshops with leading foreign OEMs or facilitate direct interactions with foreign governments and armed forces. In 2023 alone, the Indian defence industry interacted with 25 countries.
India continues to maintain cooperation with the Russian defence industry groups, especially in the production of BrahMos supersonic cruise missiles, Mango anti-tank ammunition, AK-203 assault rifles. Since then, India has been able to master and successfully export these advanced weapon systems in the global market. Technology is also at the heart of the relationship between India and the US. The India-US Cooperation Initiative on “Critical and Emerging Technologies” announced on 31 January 2022, is in line with New Delhi’s goal of strengthening military, technological and supply chain links with partner countries. The area of interest to India is the production of jet engines for its fighter aircraft. In addition, cooperation in artillery weapons technology, armoured combat vehicles, naval radars, quantum computing and artificial intelligence is also prioritised by India to develop the domestic defence industry, serving defence and export purposes. With the right policies and investment budget, the Indian defence industry has achieved new developments, playing an increasingly pivotal role in the country’s economic growth and security. The Indian defence industry also has great potential to attract foreign investment and enhance domestic technological capabilities. Defence industry reform initiatives have helped India gradually become a self-sufficient defence manufacturer and a major exporter of weapons in the global market.
Senior Colonel DANG DONG TIEN