{"id":56373,"date":"2020-03-02T11:13:50","date_gmt":"2020-03-02T05:43:50","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=56373"},"modified":"2020-03-02T11:13:50","modified_gmt":"2020-03-02T05:43:50","slug":"answered-indigenising-defence-capabilities-can-help-india-both-economically-and-strategically-examine","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-indigenising-defence-capabilities-can-help-india-both-economically-and-strategically-examine\/","title":{"rendered":"[Answered] Indigenising defence capabilities can help India both economically and strategically. Examine."},"content":{"rendered":"\n
\n Demand of the question<\/strong>\n Introduction.\n <\/strong>Contextual introduction.\n Body.\n <\/strong>Discuss the need and significance of indigenising\n defence capabilities.\n Conclusion.\n <\/strong>Way forward.\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

India\u2019s defence budget is large and is\ngrowing very fast. Currently, the country allocates about 1.8% of its GDP to\ndefence spending and imports about 70% of defence equipment. However, the\ncountry remains heavily reliant on defence imports, while its own exports are\nextremely meagre. An indigenous defence industry is vital for India given its\nsecurity environment and strategic objectives. <\/p>\n\n\n\n

Need and significance of indigenising defence\ncapabilities:<\/strong><\/p>\n\n\n\n

  1. Increasing demand: <\/strong>Due to the rising security threats, India\u2019s defence\nrequirements are likely to increase in the future. Thus, making indigenous\ndevelopment of modern defence hardware and technology a top priority for the\ngovernment is important. With\nChina and Pakistan as adversaries, there is a need to keep our armed forces\nmodernised.<\/li>
  2. Strategic significance: <\/strong>Dependence on other countries for defence\nproducts, jeopardise India\u2019s abilities to negotiate. A successful defence\nindustry provides strategic leverage with other countries, including as a\npotential supplier to neighbours who may otherwise turn to competitors.<\/li>
  3. Largest importer: <\/strong>India is the largest arms importer in the world and spends\nannually on an average about $3.6 billion, which is more than the combined\nimports of both Pakistan and China. Thus it is important to indigenise the\ndefence production, due to reduce high expenditure on defence equipment from\noutside. The Abdul Kalam Committee had recommended redressing India\u2019s\nimport-export ratio.<\/li>
  4. Economic growth: <\/strong>Defence sector has the potential to become an engine of\neconomy and drive double digit growth in leading India to $5 trillion economy.\nFurthermore, with increase in defence exports, it would reduce the costs of\ndefence acquisitions and can help subsidise a country\u2019s defence budget. In\nIsrael\u2019s case, exports finance the country\u2019s defence research and development\n(R&D) to a considerable degree. <\/li>
  5. Employment: <\/strong>As per government estimates, a reduction in 20-25% in defence related imports could directly\ncreate an additional 100,000 to 120,000 highly skilled jobs in India. Defence\nindustry is one of the 25 identified sectors under the Make in India programme,\nand is also part of the 10 \u2018Champion Sectors\u2019 that will generate significant\nemployment opportunities.<\/li><\/ol>\n\n\n\n

    Way forward:<\/strong><\/p>\n\n\n\n

    1. Predictable Requirements:<\/strong> The armed services must take primary\nresponsibility for articulating their short, medium, and long-term requirements\nfor equipment, taking into consideration technological quality, costs, India\u2019s\nindustrial capabilities, and export potential. The Sisodia Committee had\nrecommended involving industry in the acquisition process, including in setting\nqualitative requirements.<\/li>
    2. Neutrality: <\/strong>In a bid to make India\u2019s defence public sector more\ncompetitive, the Defence Ministry must ensure that the acquisitions process is\nneutral for the public and\nprivate sector. A level playing field between the Indian public and private\nsectors will accelerate the process of indigenisation by increasing\ncompetition.<\/li>
    3. Partnering for success:<\/strong> Co-development and co-manufacturing is the way\nforward to achieve the vision of turning India into a global high value\nmanufacturing destination. Indian industry must be encouraged to adopt best\npractices for global quality standards in their manufacturing processes to lead\nto the creation of a gold standard supply chain and defence manufacturing\necosystem in India.<\/li>
    4. A skilled talent pool:<\/strong> To be ready for the opportunities of the\nfuture, the industry needs to build and train talent to address the growing\nneeds of the market. In addition, the academia and industry needs to forge\npartnerships to encourage research and technological advancements and create a\ntalent pool that is industry ready.<\/li>
    5. Robust supply chain:<\/strong> A strong supply chain is critical for a defence\nmanufacturer looking to optimize costs. With the government\u2019s offset policies,\nprocurement policies and regulatory incentives spurring the growth of a\ndomestic defence industry, the SMEs need to play a more active role in\ndeveloping a robust supply chain.<\/li>
    6. Infrastructure development:<\/strong> Lack of adequate infrastructure drives India’s\nlogistics costs upwards thus reducing the country’s cost competitiveness and\nefficiency. While the government is investing in this area the pace of\ndevelopment needs to pick up considerably and public-private participation can\ngo a long way in hastening this process.<\/li><\/ol>\n\n\n\n

      Thus the indigenisation of defence industry\nis a necessary and worthwhile national security objective, particularly for a\nlarge country like India with an expanding economy, a wide variety of security\nchallenges, and growing international obligations. Efforts should be made to\nensure predictable long-term requirements and create a more level playing field\nbetween the public and private sectors. <\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual introduction. Body. Discuss the need and significance of indigenising defence capabilities. Conclusion. Way forward. India\u2019s defence budget is large and is growing very fast. Currently, the country allocates about 1.8% of its GDP to defence spending and imports about 70% of defence equipment. However, the country remains heavily reliant… Continue reading [Answered] Indigenising defence capabilities can help India both economically and strategically. Examine.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-56373","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/56373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=56373"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/56373\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=56373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}