INDIAN DEFENSE FORCES: PROGRESSING AHEAD

The tri - services contingent of the Army, Navy & Air force doing march past during Independence Day celebrations at Red Fort 15August File photo /Twitter- MAHA INFO CENTRE
Brig Akhilesh Bhargava

India has the second largest standing army, the fourth largest Air Force and the seventh largest Navy in the world. It is among the top five countries in military spending, the highest being in 2019. As per the Union Budget for the financial year 2020-21, the total allocation for defense was USD 71.1 Bn and India ranked second in defense spending. Around one-fourth of the amount was allocated for capital expenditure. India’s requirements in defense have been largely met through imports (9.2% of global arms import). Therefore, India has embarked upon a sustained defense procurement plan.

The Government of India (GoI) has made it a priority to create a robust defense industrial base under its ‘Make in India’ initiative. A self-reliant Indian Aerospace and Defense Sector is also crucial for the success of ‘Make in India’ initiative.

Just few years back 80% of the domestic defense industry was represented by government owned public sector, to include 50 Defense Research and Development Organization (DRDO), nine Defense Public Sector Undertakings (DPSUs) and 41 Ordnance Factories (OF). However, the scene has changed very rapidly in the last few years. The defense sector has been opened for the private sector in a big way. They have been permitted to enter into strategic partnership, both with Indian DPSUs and with Foreign Original Equipment Manufacturers (FOEMs). Thus, the Indian private industry is able to target global markets and in bargain will be able to bolster exports in the long term.

The mighty Tejas 

 The silver lining for India has been its entry into the global arms exporters list, making it to 23 ranked in 2019. The ranking is likely to rise sharply over the coming years with the GoI focus on encouraging weapons sales abroad. India has a target to increase its defense exports to USD 5 Bn by 2025.

The GoI since mid-2020 has begun sweeping changes in the defense sector under its ‘Atmanirbhar’ (self-reliant). The defense ministry unveiled a series of reforms ranging from a decision to convert 41 OF into seven DPSUs, to getting the ministry to release a negative list of over 200 items banned for import. Some thrust areas of the Government are: –

–        Streamlining procurement procedures.

–        Carry out a focused resource allocation, even during pandemic and perceived economic slowdown.

–        Encouraging R&D and innovation.

–        Handhold the defense industry through establishment of ‘Defense Corridors.’

–        Boosting defense exports by boosting private sector.

To promote indigenization, reduce imports, increase self-reliance and upgrade technology, research and production, DRDO has taken steps for more collaboration with the industry, private sector, research and education institutes. Simultaneously, the Government has embarked upon many schemes proactively. Some of these are:

–        The Indigenous Defense Equipment Exporters Association (IDEEA) is the government’s nodal-agency tasked with processing all export inquiries from global customers and handling exports of Indian military equipment.

–        The MoD has formulated a Defense Production and Export Promotion Policy 2020 (DPEPP-2020) to provide a significant thrust to the defense production.

–        The government has gradually raised the cap from 26 to 49 and finally to 74 percent through automatic route and 100% through MoD’s approval, whereby the investing foreign entity can have ownership up to 100% in the defense manufacturing.

–        DRDO has identified military systems and subsystems like navigation radars, tank transporters and missile canisters for the domestic private industry.

–        Government has decided to use diplomatic channels to promote the indigenously developed military platforms and weapons in overseas markets.

–        Five new Defense Young Scientist Laboratories (DYSLs) led by young directors have been created to drive the country’s war technologies of the future under the DRDO. Each one has been assigned research in cutting edge technology.

The fearsome Brahmos.

 –        The private players have finally been permitted to use the test facilities of the Government and the Services to include testing, trials, proof firing, field firing and more.

–        The defense minister has launched the Defense Testing Infrastructure Scheme (DTIS) and eight greenfield ranges for defense and aerospace related production.

–        The Government has announced Trade Receivables Discounting System (TReDS), a scheme for setting up and operating the institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate and other buyers through multiple financiers.

It is heartening to see the GoI taking a top-down approach; a continuous interaction with the user and defense sector manufacturers (both public and private). It has a clear picture of the steps that need to be implemented. The pace is much faster as compared to say five years back. India has realized that it is time to make the best out of reforms and take steps in the positive direction with a positive mindset.

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