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Source: The post Challenges India Faces in Building Its Military Industry has been created, based on the article “Make in India, Make for Defending India” published in “Times of India” on 27th January 2024.
UPSC Syllabus Topic: GS Paper 3 – Indian Economy – changes in industrial policy and their effects on industrial growth.
Challenges India Faces in Building Its Military, The article discusses India’s dependence on foreign arms imports and the challenges it faces in building its own military industry.
What is The Current Status of Arms Imports?
According to Stockholm International Peace Research Institute (SIPRI):
India was the largest global arms importer between 2018 and 2022.
As per SIPRI, global military expenditure rose 3.7% in real terms to touch $2.2 trillion in 2022.
As per Financial Times Analysis:
The Financial Times reported a 10% increase in order backlogs for defense contractors, totaling $777 billion in 2022.
Europe’s military spending rose by 30%.
What Challenges is India Facing in Building Its Own Military Industry?
Dependence on Foreign Arms: India’s position as the world’s largest arms importer between 2018 and 2022 reflects its heavy reliance on foreign military technology.
Supply Chain Issues: The global military industrial complex faces challenges in surging production to meet high demand, as seen in Japan’s modified export rules for Patriot missiles and the delay in GE404 engine supplies to India.
Building Surge Capacities: India, like other nations, struggles to quickly increase military production. This is evident from the difficulty faced by even established military industries like those in the U.S.
Lack of Domestic Orders: The Indian military industry needs consistent and substantial orders to maintain a stable and robust supply chain, a challenge highlighted by the sporadic nature of current order patterns.
Minimum War Reserves: India’s strategy of maintaining low levels of war reserves, as seen in the Kargil conflict, stresses the need for a stronger domestic military industry.
What Initiatives have been Taken by India to Overcome these Challenges?
Atmanirbhar (Self-Reliance) Push: The Indian government is promoting self-reliance in defense production, notably through the Atmanirbhar initiative.
Import Bans for Certain Military Items: Implementation of negative lists for imports to stimulate local manufacturing.
Political Support for Key Projects: High-level political commitment to major defense projects, such as the Light Combat Aircraft (LCA).
Wider Military Reforms: Introduction of reforms like the Chief of Defence Staff (CDS) position and the Agnipath scheme, aimed at streamlining military operations.
Focus on Essential Military Supplies: Greater emphasis on domestic production of critical items, highlighted by India’s recent achievement of self-sufficiency in 155mm ammunition.
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What Should be Done?
1. India must prioritize domestic production for essential military supplies like ammunition and spare parts, learning from past shortages during conflicts like Kargil.
2. Strengthen India’s military-industrial complex (MIC) by ensuring consistent and substantial orders to domestic contractors, preventing fragile supply chains.
3. Maintain higher war wastage reserves, avoiding the ‘bare-bones’ approach, as evidenced by emergency ammunition purchases during border tensions.
4. Balance military investments, considering the need for a robust submarine fleet over acquiring a third aircraft carrier, ensuring the most effective use of the defense budget.
5. Encourage public-private partnerships in defense manufacturing to enhance innovation and efficiency, optimizing resource allocation.
7. Develop strategic, long-term planning in defense expenditure, aligning with India’s geopolitical needs and the global trend of rising military expenditures.
Question for practice:
Examine India’s efforts and challenges in building its own military industry and reducing its dependence on foreign arms imports.
