India's Defence Exports: A Growing Industry

Defence Exports (FY 2022-23)

India’s Defence exports have reached an all-time high of Rs. 15,920 crores in 2022-23. And this has been a huge achievement in the defence export market of India, where an increase of around 14000 crores has been seen in just a time span of 7-8 years. It is almost 10 times the increase in exports when compared to 2016-17. It can be understood by the following graph:

Equipment to be exported:

India is going to export its pieces of defence equipment to around 85 countries, and this includes advanced artillery guns, BrahMos missiles, Akash missiles, Pinaka rockets, armoured vehicles, Light Combat Aircraft (LCA) Tejas, and too many more to count. There is a growing demand for LCA-Tejas in other countries, and BrahMos missiles have received more than 85,000 orders so far from countries all over the world. These pieces of equipment are exported by more than 100 firms in India. Prime Minister Narendra Modi has also applauded this achievement and said that it is a clear manifestation of India’s talent and enthusiasm for "Make in India," and the government will keep supporting efforts to make India a defence production hub.

This achievement has been the result of policy changes and reforms that were proposed to create an environment conducive to the defence industry's manufacturing and exporting of products.

What were these reforms that resulted in this remarkable achievement?

• To encourage self-reliance, a list of 209 items was issued with a complete import ban on them. It was proposed that these items be manufactured in India, as it has the technology to do so.
• There is a focus on indigenization, and the Defence Acquisition Procedure will try to procure equipment from Indian companies first and then from foreign countries after.
• The Ordnance Factory Board (OFB), which manufactures defence equipment like guns, special jackets, etc., was corporatized for smooth and speedy working. It was earlier a state organisation, and now it is a commercial organisation.
• The Defence Research and Development Organisation (DRDO) was entrusted with the development of the Pinaka rocket launcher and the Quick Reaction Surface-to-Air missile.
• Five young scientists' laboratories have been set up to make efficient use of young brains and their innovative ideas.
• Departments of the Defence Ministry have been digitised. Now, equipment is inspected online through video calls before delivery of a consignment by the Directorate General of Quality Assurance. And this has resulted in speeding up consignment deliveries.

In addition to that, a new post called Chief of Defence Staff (CDS) was introduced for the coordination of the Army, Navy, and Air Force. This was done in the spirit of collaborating armed forces to respond efficiently to the threats caused by neighbouring countries like Pakistan and China at the border areas. A separate department of military affairs was established to promote integration of the armed forces, and it is headed by the Chief of Defence Staff. Lt. Gen. Anil Chauhan is the current CDS of India.

Women's representation has also increased in the military. They are now hired on a permanent commission basis. Earlier, they were given short-service commissions. Sainink schools are also open to girls to encourage them to contribute to the defence sector.

All these reforms had a positive impact on strengthening India’s defence sector. It is because private players have been allowed to step up in the defence manufacturing industry. Tata Advanced Systems Ltd., Mahindra Aerospace, Kalyani Group, and Larsen & Toubro are some of them. Larsen and Toubro Ltd. provides maintenance services to US ships, which is also a kind of export as they are exporting their services.

Experts' Projections:

Experts say that this market is expected to reach an export value of Rs. 25000 crores next year and Rs. 50000 crores in the next ten years because many countries have shown their interest in procuring defence material from India, especially the BrahMos missile and the LCA-Tejas. Items made from local resources have become globally competitive in price. And private players must stick their necks out to take exports to the next level.

Till now, India was reliable on the defence procurement procedure (DPP) model, but it is now inclined towards the defence manufacturing procedure model. Now the challenge will be to diversify the range of manufacturing. Only then will India go a long way in this race to be a defence manufacturing hub. Artillery guns, armoured vehicles, and tanks are the next big-ticket items that will be the prime focus of India’s defence sector because developing countries in South Asia cannot afford to purchase them from the US. But they can procure them from India at affordable rates.

Conclusion:

Therefore, we can say that India is on the path towards atma-nirbharta, or self-reliance. Time is the key factor here. India needs to be persistent, as it can reach new heights in the export market and set a benchmark for other countries.