India’s Defence Procurement Challenges

Source-This post on India’s Defence Procurement Challenges has been created based on the article “Weapons and technology – In its procurement decisions, India faces a balance-of-power choice as it weighs its options between western democracies and Russia ” published in “Business Standard” on 2 August 2024.

UPSC Syllabus-GS Paper-3- Changes in Industrial Policy and their Effects on Industrial Growth.

Context- The article highlights that international arms procurement decisions are often influenced more by foreign policy and strategic factors than by technology or cost. The AUKUS Alliance (Australia, UK, US) highlights this, as it focuses on providing Australia with nuclear submarine technology to bolster defence against potential Chinese aggression.

What challenges does India face in defence procurement?

1) Impact of Foreign Policy-

A) Choice of Rafale over Gripen -India chose the French Rafale over the Swedish Gripen because of France’s diplomatic influence, nuclear capabilities, and technological edge, even though the Gripen offered superior combat effectiveness, price, and logistics.

B) Project 75-India (Submarine Procurement)– The Indian Navy has struggled for a decade to finalize the purchase of six AIP submarines. German shipbuilder HDW is a strong contender, but Germany’s low-key diplomatic approach to arms sales has complicated the decision.

2) Strategic Dilemma-India faces a dilemma in balancing its options between supporting Ukraine, backed by NATO and Western democracies, and Russia, supported by China and other less democratic countries. Supporting Russia could indirectly benefit China’s military, making India’s decision complex.

What are the steps taken by India to push for Self-Reliance?

1) Innovations for Defence Excellence – Defence Innovation Organisation (iDEX-DIO)-This supports startups and small businesses in the defense sector. iDEX-DIO has engaged over 400 startups and cleared procurement for 37 items worth around ₹2,000 crore.

2) Initiatives by DRDO– DRDO( Defence Research & Development Organisation) is leading military development in platforms, weapon systems, and AI. Key achievements include the Dhanush artillery gun, Tejas fighter jet, and Akash missile system.

Read More- Indigenisation of Defence Sector

3) Indigenization Efforts and Import Reduction – The Ministry of Defence has banned imports of certain items, listed over 26,000 for indigenization on the SRIJAN portal, and successfully produced 7,031 items locally. Defense imports have decreased from 46% to 36.7% since 2018-19, with ongoing efforts towards self-sufficiency.

Question for practice

What challenges does India encounter in defense procurement? What measures has India implemented to promote self-reliance in defense?