{"id":283070,"date":"2024-02-16T19:20:14","date_gmt":"2024-02-16T13:50:14","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=283070"},"modified":"2024-02-17T13:26:51","modified_gmt":"2024-02-17T07:56:51","slug":"defence-exports-a-strategic-imperative","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/defence-exports-a-strategic-imperative\/","title":{"rendered":"Defence Exports: A Strategic Imperative"},"content":{"rendered":"

\"India<\/p>\n

Source:<\/strong> This post has been created based on the article \u201cDefence exports: A strategic imperative\u201d<\/strong> published in \u201cBusiness Standard\u201d<\/strong> on 16th<\/sup> February 2024.<\/p>\n

UPSC Syllabus Topic: <\/strong>GS Paper 2 International Relations – Bilateral, regional and global groupings and agreements involving India and\/or affecting India\u2019s interests.<\/p>\n

News:<\/strong> The article discusses India\u2019s defence exports industry \u2013 its growth, reasons behind growth and positive future prospects. India Defence Exports: A Strategic Imperative<\/strong><\/p>\n

Background:<\/strong><\/p>\n

What are the benefits of defence exports?<\/strong><\/h2>\n

1) Economic Gains due to Expanding Market:<\/strong> Experts predict a rapid expansion of the global defence and aerospace industry, from $750 billion in 2022, to $1.38 trillion by 2030.<\/strong><\/p>\n

2) Strategic advantages: <\/strong><\/p>\n

    \n
  1. Dependencies: <\/strong>Defence equipment from a specific nation establishes technological dependencies, influencing maintenance, repair, spare parts, etc.<\/li>\n
  2. Military Interoperability: <\/strong>It also enhances military interoperability, expanding options for joint operations.<\/li>\n<\/ol>\n

    These significantly impact the diplomatic and strategic geopolitical stance of partner nations.<\/p>\n

    What is the status of India\u2019s defence exports?<\/strong><\/h2>\n

    India\u2019s defence exports surged to a record Rs. 16,000 crore in 2022-23<\/strong>, a huge 800% growth in 5 years and reaching 85 countries across continents. This propelled India into the top 25 defence exporters globally.<\/p>\n

    Nearly 80% of this growth is attributable to private industry<\/strong>.<\/p>\n

    India\u2019s expanding defence exports encompass missiles, rockets, torpedoes, artillery-guns, and drones, among others.<\/p>\n

     <\/p>\n

    Read More UPSC Topics-<\/strong><\/h2>\n\n\n\n\n
    \n

    Bhagat Singh\u2019s Vasudhaiva Kutumbakam<\/a><\/h4>\n<\/td>\n<\/tr>\n

    \n

    A dictionary to prevent a language from vanishing<\/a><\/h4>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    What has led to a surge in India\u2019s defence exports?<\/strong><\/h2>\n
      \n
    1. Enabling participation of private sector and startups<\/strong> in defence industry ecosystem.<\/li>\n
    2. Streamlining export permissions via a web-enabled system<\/strong>, which has reduced delays.<\/li>\n
    3. Online system to share enquires and leads<\/strong> with defence industry.<\/li>\n
    4. Instituting open general export licence.<\/li>\n
    5. Including defence exports as a key area for evaluating performance of defence attaches<\/strong> posted in Indian embassies abroad.<\/li>\n
    6. Availability of defence lines of credit (LOC)<\/strong>.<\/li>\n
    7. Repositioning DefExpo and Aero India<\/strong> as world-class exhibitions showcasing India\u2019s defence innovation ecosystem.<\/li>\n<\/ol>\n

      What are the reasons behind positive future growth prospects?<\/strong><\/h2>\n

      1) Integration of MSMEs: <\/strong>Hundreds of Indian MSMEs will be integrated into global defence original equipment manufacturer (OEM) supply chains.<\/p>\n

      2) China\u2019s declining arms exports:<\/strong> This is due to poor quality and unreliable performance of Chinese equipment. For instance, Nigeria returning Chengdu F-7 fighters.<\/p>\n

      3) Other Exporters Pre-Occupied: <\/strong>Russia-Ukraine conflict-related disruptions, Israel\u2019s preoccupation with Hamas, and USA being tied up on multiple fronts has led to India emerging as a reliable partner for countries looking to diversify their sourcing.<\/p>\n

      4) India\u2019s Expertise: <\/strong>For instance, India is skilled at servicing Russian platforms, thus making it attractive to countries possessing Russian inventory.<\/p>\n

      5) India\u2019s Strenghts in the IT Space: <\/strong>The rising importance of software and AI in defence platforms aligns with India\u2019s strengths.<\/p>\n

      6) Defence Startups: <\/strong>Government\u2019s Innovation for Defence Excellence (IDEX) programme<\/strong> has created hundreds of startups, which are poised for global licensing of their technologies.<\/p>\n

      7) India\u2019s Positive Perception: <\/strong>Transformation of the global perception of India as a rapidly reforming and growing innovation economy lends credibility to its defence industry.<\/p>\n

      What more needs to be done?<\/strong><\/h2>\n
        \n
      1. G2G Sales: <\/strong>Rules should be developed for government-to-government sales<\/strong> to make it easier for foreign governments to procure from Indian firms.<\/li>\n
      2. Defence LOCs:<\/strong> Allowing empanelled defence firms to include defence LOC as part of their proposals could be considered. Interest rates for defence LOC need to be reduced.<\/li>\n
      3. Licensing of Indian Technologies: <\/strong>Establishing a licensing template safeguarding national and startup interests is essential.<\/li>\n<\/ol>\n

        Question for practice:<\/strong><\/p>\n

        What is the status of India\u2019s defence exports? Why are they expected to grow further in the future?<\/p>\n","protected":false},"excerpt":{"rendered":"

        Source: This post has been created based on the article \u201cDefence exports: A strategic imperative\u201d published in \u201cBusiness Standard\u201d on 16th February 2024. UPSC Syllabus Topic: GS Paper 2 International Relations – Bilateral, regional and global groupings and agreements involving India and\/or affecting India\u2019s interests. News: The article discusses India\u2019s defence exports industry \u2013 its… Continue reading Defence Exports: A Strategic Imperative<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":283184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1235],"tags":[10503,212,239],"class_list":["post-283070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-international-relations","tag-business-standard","tag-gs-paper-2","tag-international-relations","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/02\/India-Defence-Exports.png?fit=1280%2C1000&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/283070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=283070"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/283070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/283184"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=283070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=283070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=283070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}