Mains Practice Questions

Introduction

India, historically one of the world's largest arms importers, is undergoing a strategic transformation to emerge as a self-reliant and export-oriented defence manufacturing power. This shift is driven by a combination of national security needs, economic opportunities, and aspirations of global leadership.

Body

Strategic Dimensions

• Enhancing National Security and Strategic Autonomy: Heavy reliance on foreign arms (e.g., S-400 from Russia) creates vulnerability during geopolitical tensions.
  • Indigenous defence capability reduces external dependency and enhances operational sovereignty.
• Expanding Geopolitical Influence: India exports defence equipment to over 85 countries, and ranks among the top 25 arms exporters globally.
  • Government-to-Government (G2G) agreements, such as the India-Japan ACSA, boost diplomatic and strategic engagement.
• Strengthening Regional Presence: Indigenous platforms like INS Vikrant and Pralay missile enhance maritime strength in the Indo-Pacific. Defence exports support India’s vision as a net security provider.
• Defence Diplomacy as Soft Power: High-profile exports, such as the BrahMos missile deal with the Philippines ($375 million), help project India as a responsible and reliable defence partner.

Economic Dimensions

• Surge in Defence Exports: Exports rose 31-fold over the past decade, reaching ₹21,083 crore in FY 2023–24. The target is ₹35,000 crore by 2025, making defence a key sector under Make in India.
• Boost to Domestic Manufacturing: Domestic production hit ₹1.27 lakh crore in FY24, with 75% of the defence capital procurement budget earmarked for Indian industry.
• Growth of Private Sector and MSMEs: Defence licenses rose from 215 (pre-2014) to 440 (by 2019), reflecting increased private sector participation.
  • Initiatives like iDEX and Defence Industrial Corridors in Tamil Nadu and Uttar Pradesh are driving investments and innovation.

Technological Dimensions:

• Indigenous R&D and Innovation: DRDO-led efforts have yielded exportable systems like BrahMos, Akash, ALH, and Pinaka.
• Strategic Collaborations and Joint Development: India is co-developing key technologies with partners:
  • HAL–GE deal for co-producing F414 engines.
  • India–France collaboration on aero engines.
  • INDUS-X initiative with the US for AI and hypersonics.
• Emerging Tech Focus: Through iDEX and defence startups, India is developing niche capabilities in artificial intelligence, drones, loitering munitions, and cybersecurity.

Challenges Hindering the Transformation

• Continued Import Dependence: India still accounts for nearly 10% of global arms imports (SIPRI), affecting self-reliance and strategic autonomy.
• Cumbersome Procurement Processes: Lengthy acquisition cycles, as seen in the scrapped MMRCA deal (2007–2015), delay modernization.
• Limited Private Sector Involvement: Private firms contribute only 22% to defence production; PSUs still dominate large contracts.
• Weak Implementation of Offset Policy: Of ₹66,427 crore worth of offset obligations (2005–18), only ₹11,396 crore were realized (CAG report), reducing technology transfer benefits.

Measures for Strengthening Transition:

• Deepen Global Collaborations: Engage in more co-development and co-production with global players. Partnerships like HAL–GE and Mazagon Dock–Thyssenkrupp should be expanded.
• Streamline Export and Production Processes: Set up a single-window export clearance system. Digitize testing and licensing through SOPs to reduce delays.
• Strengthen Offset Management: Create a dedicated offset management agency. Align offsets with strategic tech needs and export-oriented projects.
• Legal Reforms for Ethical Exports: Introduce a legal framework for assessing International Humanitarian Law (IHL) compliance before approving arms sales. This would align India with global norms and protect its global image.
• Invest in Niche Defence Technologies: Focus R&D on high-impact areas: AI-based warfare, hypersonics, cybersecurity, and unmanned systems. Expand iDEX and defence innovation hubs.

Conclusion

India’s transformation from a major defence importer to a global manufacturing hub is a multidimensional journey involving strategic foresight, economic resilience, and technological innovation. Integrating policy reform, ethical governance, private sector synergy, and global partnerships — will position India not just as Atmanirbhar, but as a reliable and responsible pillar of the global defence ecosystem.