Brief-Article | REPORT SYNDICATION
In a significant move to bolster domestic arms manufacturing, India has released its fourth Positive Indigenization List (PIL), which includes 928 new sub-systems, spare parts, and components for major weapons systems. This initiative is part of the government’s ongoing efforts to promote self-reliance in defense manufacturing under the Atmanirbhar Bharat campaign.
Prior to this latest release, India had already introduced three PILs, encompassing a total of 1,238 items—351 in the first list, 107 in the second, and 780 in the third—along with an additional 2,500 items in Annexure-A of the first list that have been successfully indigenized.
Economic Boost and Export Aspirations
These efforts are aimed at not only enhancing local vendors’ confidence in the defense sector but also at improving the Indian economy. The government’s goal is to position India as a significant arms exporter while meeting the technological needs of its armed forces.
However, India’s ambitious indigenization and export claims have come under scrutiny. The Stockholm International Peace Research Institute (SIPRI) recently reported that India was excluded from the top 25 arms exporters list for the 2018-2022 period, dropping from its previous ranking of 23rd for 2017-2021. Factors contributing to this decline include limited production capabilities, financial constraints, and a competitive landscape among global arms exporters.
Import-Export Imbalance
India’s arms trade revealed a stark imbalance, with imports amounting to $3.1 billion and exports at only $1.1 billion in FY 2019-20. This disparity has driven the Indian government to promote domestic arms manufacturing more aggressively since May 2020, aiming to reduce foreign dependence and eventually become an arms exporter.
The Draft Defense Production and Export Promotion Policy 2020 aims for a defense industry worth $25 billion by 2025, including $5 billion in arms exports. The recent Defense Budget 2023 has allocated 75% of its capital procurement budget to domestic manufacturers, up from 68% the previous year.
Production and Quality Challenges
Despite these initiatives, challenges persist. India’s historical reliance on foreign vendors for military needs has raised concerns regarding the local arms industry’s capability. The central government’s aspirations for domestic arms manufacturing have often been seen as burdensome due to a lack of quantitative and qualitative expertise.
The Kelkar Committee’s recommendations in 2005, which sought to enhance public-private partnerships in arms manufacturing, have yet to fully address the issues plaguing the industry. Quality concerns have also hindered India’s potential as a major arms exporter, with incidents such as technical failures in the Dhruv helicopters leading to contract cancellations.
Regional and Global Competition
India operates in a complex security environment, particularly with the rising influence of China and Pakistan in South Asia. While Pakistan remains a significant arms importer, China has emerged as a major arms supplier to the region, further complicating India’s aspirations in the arms market.
The U.S. dominates global arms exports, accounting for 40% of the market, while China continues to expand its influence. India’s recent success includes a $375 million deal with the Philippines for BrahMos missiles, a key highlight in its export strategy.
Looking Ahead
As India aims to establish itself as a reliable arms exporter, the government must intensify its efforts in international diplomacy, market engagement, and the development of trusted buyer relationships. The focus on mass production and the export of key platforms like the BrahMos missiles, Pinaka Multi-Barrel Rocket Launch System, and Akash air-defense system is set to play a pivotal role in shaping India’s future in the global arms market.
Conclusion
While India’s indigenization efforts reflect a commitment to self-reliance and economic growth, the path to becoming a top arms exporter remains fraught with challenges. Enhanced production capabilities, improved quality assurance, and strategic international engagements will be crucial for India to secure its position in the competitive landscape of global arms trade.
Report Syndication 