DEFENCE INDIGENIZATION AND MODERNISATION

Published on 08 Feb 2025

The rising security imperative of the 21st century has necessitated nations to focus more on their defence to protect national security and sovereignty. As per SIPRI, the global military budget for 2022 has been $2.2 trillion with the US accounting for around 40% of this expense. India is the fourth largest spender with $81.4 billion which is around 2.4% of India’s GDP.

Defence Indigenization

As per SIPRI report, India has been the biggest importer of major arms during the 2018 - 22 period with India’s import contributing to around 11% of the world import. This dependence on other nations in the most strategic sector has questioned India’s autonomy and hence led to the call for defence indigenization.

Need to promote defence indigenization

• Political / Strategic

• Reduces dependency: Developing indigenous defence capabilities reduces reliance on foreign suppliers, ensuring a constant supply of critical defence equipment even during geopolitical tensions.

• For example: 45% of India’s defence comes from Russia and any political tension with Russia can affect this supply.

• Strategic Flexibility: Being self-reliant in defence production grants India the flexibility to adapt quickly to evolving security challenges.

• Example: India’s Project 75 which manufactures submarines aims at strengthening India’s navy and to strengthen maritime security.

• Bilateral Partnerships: Successful indigenization projects can lead to international collaborations, strengthening diplomatic ties with partner countries.

• Example: Brahmos has enabled better bilateral cooperation with Russia.

• Global Recognition: Demonstrating self-reliance in defense garners respect and recognition on the global stage.

• Economic

• Growth of the Defense Industry: Defense indigenization fosters the growth of the domestic defence industry, generating jobs, spurring innovation, and driving economic growth.

• Example: INS Vikrant could reduce India’s import of aircraft carriers. This reduces the fiscal deficit and also promotes growth of the defense sector.

• Export Potential: A robust indigenous defence industry can lead to defense exports, generating revenue and contributing to the overall economy.

• Example: As per PIB, India’s defence export has reached 16000 crore in 2022 - 23 which is 10 times the export in 2016 - 17.

• Technological

• R&D Boost: Defence indigenization necessitates research and development efforts, leading to technological advancements that can spill over into civilian sectors.

• Example: The intercontinental ballistic missile Agni 5 would boost R & D in India and generate spill over effects.

• Cybersecurity and Data Protection: By relying on indigenous technologies, India can better protect sensitive defence data from cyber threats and espionage.

Challenges associated with defence indigenization

• Funding Shortages: Adequate funding is required for research, development, and production of defence systems, which can be constrained due to budget limitations.

• Example: The development of the Tejas Light Combat Aircraft faced budget constraints, leading to delays in achieving initial operational capability.

• Technological gap: Developing cutting-edge defence technologies requires specialized knowledge and expertise, which may be lacking in certain areas.

• Example: The development of the Arjun Main Battle Tank faced technical challenges and delays due to the complexity of designing and manufacturing a modern tank

• Dependence on foreign components: Many indigenous projects still rely on imported components or subsystems, making the systems vulnerable to supply chain disruptions.

• Example: The production of the Light Combat Helicopter (LCH) faced challenges in sourcing certain critical components, leading to delays 

• Bureaucratic hurdles: Complex procurement procedures and lengthy approval process results in delay in completion of projects.

• Brain Drain: Talented professionals in defence-related fields sometimes seek opportunities abroad, leading to a loss of expertise.

• Example: Scientists from India are occupying renowned positions in the US and other western nations thus causing brain drain.

• Lack of coordination: Effective collaboration between government agencies, research organizations and private industries has been a concern.

• Example: Lack of coordination has led to mismatch between technological development and operational requirements.

• Certification Standards: Meeting international certification standards can be a challenge, especially for complex defence technologies.

Government initiatives

The Indian government has taken several initiatives to promote defence indigenization, aimed at enhancing self-reliance in defence manufacturing and technology development. 

• Defence Procurement Policy: Based on Dhirendra Singh committee recommendation, an additional category Buy (Indian - IDDM), i.e., Indigenously Designed Developed and Manufactured.

• Defence Innovation Hub: These hubs provide platforms for collaboration between the defence industry, startups, academia, and research institutions.

• Atmanirbhar Bharat Abhiyan: The promotion of domestic manufacturing and reduction of imports also includes defence sector.

• Preference to 'Buy (Indian)', 'Buy & Make (Indian)' & 'Make' categories of acquisition over the 'Buy (Global)' category.

• The FDI policy: composite foreign investment up to 49% is allowed through Government route (FIPB) and beyond 49% with the approval of the Cabinet Committee on Security (CCS).

• E biz portal: For applying for Industrial Licence in a faster way.

According to the Stockholm International Peace Research Institute (SIPRI), India’s arms imports declined by 11% between 2013-2017 and 2018-2022

Defence Modernization

Modernizing defence involves upgrading equipment, technology, infrastructure, and operational capabilities to meet contemporary security threats and to safeguard national interests.

Significance of defence modernization: 

• Superior military capability: Equipping weapons with technologically advanced systems, boosting their combat effectiveness, and providing a tactical edge over potential adversaries.

• Example: The acquisition of Rafale fighter jets has bolstered the Indian Air Force's air superiority capabilities, enhancing its ability to conduct air operations effectively.

• Deterrence and stability: Modern military capability inhibits enemies from launching an attack, thus maintaining a deterrent state.

• Example: India’s second-strike nuclear capability has facilitated deterrence and ensured stability in the region.

• Counter unconventional threats: Modernization efforts help strengthen the ability to counter unconventional threats such as terrorism and effectively manage border security challenges.

• Example: The Comprehensive Integrated Border Management Plan aims at modernizing border management and reducing terror threats.

• Enhance soft power: A modernized defence capability enhances India's standing in the global arena and influence on international security matters.

• Example: India being the 4th largest spender on defence (According to SIPRI, India was the 4th largest military spender in 2022) enhances India’s power in geopolitics.

• Humanitarian assistance: Modernized defence forces are better equipped to respond promptly to natural disasters, providing vital assistance to affected populations.

• Example: Modern capability has been crucial for India to lead Operation Maitri in Nepal.

• Counter information warfare: Defence modernization addresses emerging challenges in cyber warfare and information warfare, ensuring protection against digital threats and attacks.

• Example: The development of CERT In and Indian Cyber Crime Coordination Centre aims at ensuring cyber security.

• Interoperability: Modernized armed forces enhance India's ability to engage in joint exercises and operations with partner countries, promoting regional and global security cooperation.

• Example: Yudh Abhyas and Malabar are India’s joint exercise with the US, which has the most modern defence equipment.

Government initiatives

• Defence procurement reforms: The strategic partnership model under Defence Procurement Procedure encourages collaboration with foreign manufacturers.

• Purchase of strategic weapons: The import of Rafale and Globemaster have been crucial for modernization

• Defence India start-up Challenge: Promotion of more MSMEs in defence sector.

• Defence corridors: Defence industrial corridors have been established in Uttar Pradesh and Tamil Nadu to promote modern domestic defence systems.

• Offset policy: The Indian government's offset policies encourage foreign suppliers to invest a portion of their contract value in India's defence sector, promoting technology transfer and modernization.

Tags:
Security

Keywords:
Internal security Defense Indigenization Defense Modernization National security architecture

Syllabus:
General Studies Paper 3

Topics:
Internal Security