Self-reliance in India’s defense sector -Public versus private challenges

Source: The post self-reliance in India’s defense sector has been created, based on the article “Public versus private challenges” published in “Business Standard” on 5th January 2024.

UPSC Syllabus Topic: GS paper3- Science and technology-indigenisation of technology

News: The article outlines the Indian Ministry of Defence’s approval of over ₹1.42 trillion for purchasing DRDO-developed weapons systems. It discusses the role of private companies in increasing domestic defense production and the efforts to decrease dependency on imports.

What is the meaning of “Acceptance of Necessity” (AON)?

Acceptance of Necessity” (AON) is the initial approval given by the Ministry of Defence for the procurement of defense equipment. It marks the beginning of the detailed procurement process, including requests for information, proposals, evaluations, and final contract awarding. It’s essentially a green light from the MoD indicating that the procurement plan is necessary and can proceed through the acquisition procedure.

What does self-reliance in India’s defense sector entail?

Emphasis on Domestic Production: India is focusing more on DRDO-developed systems in its pursuit of self-reliance under the “Aatmanirbhar Bharat” initiative. Industry bodies report that 80-90% of Acceptance of Necessity (AoN) relates to Indian companies.

Increased Private Sector Involvement: Private companies like Bharat Forge and Tata are gaining expertise and influence in defense by fulfilling production orders and partnering with DRDO on projects like the Advanced Towed Artillery Gun System.

Growth in Defense Exports: The private sector’s role in defense exports is expanding, with a notable increase in export figures to ₹16,000 crore this year, reflecting a substantial growth trajectory in the sector.

Reduction in Imports: The initiative aims to decrease dependency on foreign technology, though challenges remain in acquiring advanced capabilities domestically. The Ministry of Defence reported a reduction in defense imports from 46% to 36.7% since 2018-19.

What challenges does India’s defense sector face?

Lengthy Procurement Process: The defense acquisition involves multiple stages, often stretching over years, delaying the actual deployment of systems. Apart from this, the private sector’s involvement is challenged by bureaucratic delays and hesitance in adapting quickly to defense needs.

Technological Gaps: Despite increased domestic production, certain advanced technologies still need to be imported due to gaps in local capabilities, as seen with sophisticated platforms like the fifth-generation stealth fighter.

Way forward

To progress, India should continue enhancing its domestic defense capabilities, notably in technology, where private sector growth and exports are promising, as seen with companies like Bharat Forge. Simultaneously, balancing strategic foreign acquisitions is vital to address immediate needs and technology gaps, ensuring a robust and self-reliant defense sector.

Question for practice:

Discuss the role of private companies in increasing domestic defense production and reducing dependency on imports.