Abstract
India’s
progress in increasing its indigenous defence production capabilities, (in
recent years), is indeed remarkable. The country has achieved significant
milestones by manufacturing key defence items such as nuclear-powered
submarines, an aircraft carrier, cruise missiles, fast speed patrol boats, and
light combat helicopters. This shift has transformed India from being the
largest defence importer to a more self-reliant nation, capable of exporting
defence equipment to a growing number of countries. The transformation in
India’s defence sector is reflected in the significant growth of its indigenous
defence equipment and weapons exports. Over the past eight years, India’s
exports in this sector have grown tenfold, with more than 85 countries now
importing Indian defence products. This growth demonstrates the increasing
recognition and acceptance of India’s capabilities in the global defence
market. However, there are several key challenges that India needs to address
for further advancing its indigenous defence production capabilities. Two
significant challenges are, ensuring availability of sufficient investments and
the induction of advanced technology, on a continuing basis (in the defence
manufacturing sector) for maintaining a competitive edge in the global defence
market.
The
Golden Era of the Indian Defence Sector
The growth
of India’s indigenous defence production capabilities has been exceptional in the last few
years. India organised the Def Expo (18-22 October 2022) in Gandhinagar,
displaying defence weapons and systems produced in India. More than 1300
exhibitors, including India’s defence industry, joint ventures associated with
Indian defence industry, Micro, Small and Medium Enterprises (MSMEs),
about 100 start-ups, and many foreign representatives, including 53 from
African countries, attended the exhibition. India’s Defence Minister Shri
Rajnath Singh, on this occasion, stated that this is a ‘golden era’ of the
Indian Defence Sector.1
India’s transition from being the
largest defence importer to a modest exporter is a significant shift. The fact
that India now exports defence equipment and weapons to more than 85 countries,
highlights the growing acceptance and demand for Indian defence products
worldwide.2 India has a list of 7031 defence items that
have been indigenised. In 2020-2021, 74 per cent of contracts awarded by the
Indian Army went to the Indian vendors. While defence imports have been reduced
between 2018-19 and 2021-22 from 46 per cent to 36.7 per cent, defence exports
touched Rs 16,000 crore in FY 2022-2023.3 India plans to achieve a turnover of USD 25
billion, including export of USD 5 billion in Aerospace and Defence goods and
services, by 2025.4
India is producing certain items in
collaboration with foreign entities under the Transfer of Technology (ToT)
scheme and steadily moving to totally indigenise strategic items. While earlier
three Positive Indigenisation Lists (PILs) covered 3060 items for which there
was an embargo on the import beyond the timelines, in May 2023, the Ministry of
Defence (MoD) approved the 4th PIL of 928 strategically-important Line
Replacement Units/Sub-systems/Spares and Components. Under Atmanirbharata
in defence, 164 PIL items, with an import substitution value of Rs 814 crore,
that were to be indigenised by December 2022, have met the target within the
timelines.5
Gradually, India is trying to reduce its
dependence for spare parts on foreign countries. India’s defence production
infrastructure is supported by the requisite research and development ecosystem
and a reasonable budget. Notwithstanding that modernisation of the Indian Armed
Forces demands further increase in defence budget, currently it accounts for
2.15 per cent of the country’s total GDP.6 The objective is not only to indigenise
defence production but also to modernise the Indian Armed Forces, to raise
their efficiency in the current scenario by equipping them with modern weapons
and weapon systems, supported by advanced technology, to meet the upcoming
challenges.
India has established two Defence
Industrial Corridors in Uttar Pradesh and Tamil Nadu to boost defence
production capabilities. The purpose is to facilitate defence production by
having special zones with a faster decision-making system and tax benefits. ‘The
nodal agency for the Uttar Pradesh Defence Industrial Corridor (UPDIC) has
signed 69 MoUs with the industry, with potential investment of Rs 10,545 crore.
An Investment of Rs 1,767 crore has been made by the industries in UPDIC. It
has six nodes – Aligarh, Agra, Kanpur, Chitrakoot, Jhansi, and Lucknow. The
nodal agency for the Tamil Nadu Defence Industrial Corridor (TNDIC) has
arranged investment worth Rs 11,359 crore through MoUs etc. with 42 industries.
An investment worth Rs 3,176 crore has been made by the industries in the
TNDIC, which comprises Chennai, Tiruchirappalli, Coimbatore, Salem, and Hosur.
These corridors are expected to create new defence production facilities and
promote clusters with necessary testing and certification facilities, export facilitation
centres, technology transfer facilitation, etc.’7
Foreign
Direct Investment (FDI) in the Defence Sector
Alongside,
India has also liberlised FDI in the defence sector. It now allows FDI under
the automatic route up to 74 per cent (up from 49 per cent) and up to 100 per
cent through the government route, wherever it is likely to result in access to
modern technology. The total FDI inflow in the defence sector between April
2000 and December 2022 was USD 15.78 million. The Department of Defence Production
(DDP) has brought in the following policy reforms for attracting foreign
investment8:
n Higher multipliers are assigned in the
Offset Policy to attract investment and ToT for defence manufacturing.
n Specific consultations are done regularly
with Foreign Original Equipment Manufacturers.
n Under the Aerospace and Defence Policy
notified by the two state governments- UP and Tamil Nadu, customised incentive
packages are provided to investors based on investment, employment, and project
location, which may include GST based refunds on sales, stamp duty concessions
on land allotment, electricity tax exemption, and capital and training
subsidies for training workers.
n The Defence Investor Cell has been
created to provide all necessary information including addressing queries
related to investment opportunities, procedures, and regulatory requirements
for investment in the sector.
Emphasis
on Critical Military Technologies
The
MoD, under the ‘Make in India’ and Atmnirbharata initiatives, has
identified three critical technologies including a production line for
semiconductors, aero-engines and important advanced materials used in military
technology. These technologies are important for the different platforms
and weapons used by the Indian Armed Forces. The aim is to cut down dependency
on imports in these niche areas and achieve self- dependence. The MoD and the
Ministry of Electronics and Information Technology are working together to
manufacture ‘chips’. Defence Research and Development Organisation (DRDO)
identified nine thrust areas for focused research, namely, platforms, weapon
system, strategic systems, sensors and communication systems, space, cyber
security, Artificial Intelligence (AI) and robotics, material and devices and
soldier support. To enable the adoption of AI in defence, the Defence
Artificial Intelligence Council (DAIC) and the Defence Artificial Intelligence
Project Agency (DAIPA) have been created. The Unmanned Aerial Vehicle (UAV)
designed and developed by DRDO, has been successfully tested in fully
autonomous mode.9 The DRDO has indigenously developed an engine
with 180 HP capacity for the UAV Tapas, which can go up to 17000 ft altitude.10 It marks a significant development towards
self-reliance in manufacturing UAVs, which are going to play a vital role in
future wars.
According to DRDO Chairman, Dr Samir
Kamat, his organisation is now focussing on cutting edge technology to face the
challenges in future wars. Three aspects are especially given importance: space
situational awareness, underwater domain awareness, and defensive system to
protect military and strategic assets from hypersonic weapons. Alongside,
research in Direct Energy Weapons like laser and high-power microwaves, and
cyber-related weaponry continue to receive due attention.11
India
is also collaborating with foreign countries for research and development in
critical and advanced technology. The India-US initiative on Critical and
Emerging Technology was launched to elevate and expand strategic technology
partnership and defence industrial cooperation
between the two countries. India and US launched a new bilateral ‘Defence
Industrial Cooperation Roadmap’ to accelerate technological cooperation in
critical technologies like AI, Quantum Mechanism, and Advanced Wireless. In
addition, both countries are jointly enhancing research focus on identifying
challenging dimensions of maritime security and Intelligence Surveillance
Reconnaissance operations.12 India and France are also collaborating in the
production of six Scorpene submarines through the ToT. The first Scorpene
submarine, INS Kalvari, was commissioned in 2017.13
Important
Defence Items Manufactured in India
In
recent years, India has pushed the policy of ‘Make in India’ in the defence
sector, which is implemented through various policy initiatives that promotes
indigenous design, development, and manufacture of defence items. The
initiatives for encouraging indigenous production of defence items, inter-alia,
include priority for procurement of capital items from domestic sources under
the Defence Acquisition Procedure 2020, simplification of the industrial
licencing process with longer validity, liberalisation of FDI, and sourcing of
items from the Positive lists. Many significant projects, including the 155 mm
Artillery Gun system ‘Dhanush’, Bridge Laying Tank, Thermal Imaging Sight
Mark-II for T-72 Tank, Light Combat Aircraft ‘Tejas’, ‘Akash’ Surface to Air
Missile System, Submarine ‘INS Kalvari’, ‘INS Chennai’, Anti-Submarine Warfare
Corvette, Arjun Armoured Repair and Recovery Vehicle, Landing Craft Utility,
etc., have been produced in the country under ‘Make in India’ initiative of the
government in the last few years.14
Some of the major items exported in the
past few years, are, Fast Speed Patrol Boats, Coastal Surveillance System,
Light Weight Torpedoes, Light Weight Torpedo Launcher and parts, Dornier-228
Aircraft, Wheeled Infantry Carrier, Light Specialist Vehicle, Mine Protected Vehicle,
Passive Night Sights, Battle Field Surveillance Radar Extended Range,
Integrated Anti-Submarine Warfare, Advanced Weapons Simulator, Personal
Protective Items, 155 mm Artillery Gun Ammunition, Small Arms and Ammunitions,
Weapon locating Radars, Identification of Friend or Foe -Interrogator, etc.15 India is also exporting BrahMos missiles that
are manufactured in India in collaboration with Russia.16
Big-ticket
Items
Among
the big-ticket items produced in India are the nuclear-powered submarine INS
Arihant, BrahMos Cruise Missile, the INS Vikrant aircraft carrier and Light
Combat Helicopter (LCH) Prachand.
INS
Arihant
Launched
in 2009 and commissioned in 2016, INS Arihant is India’s first indigenous
nuclear powered ballistic missile capable submarine, built under the Advanced
Technology Vessel (ATV) project. INS Arihant and its class of submarines are
classified as nuclear-powered ballistic missile submarine (SSBN). They can
remain under water for longer durations and do not create noise like diesel submarines.
The commissioning of the Arihant submarine was important for the nuclear triad.
Prime Minister Modi remarked that the commissioning of INS Arihant completes
India’s nuclear triad, though India remains committed to ‘No First Use’ of
nuclear weapons.17
Crucially, the Submarine Launched
Ballistic Missiles (SLBMs) for these submarines are also being indigenously
developed by DRDO. These are lighter, more compact, and stealthier than their
land-based counterparts, the Agni series of missiles which are medium and
intercontinental range nuclear capable ballistic assets. INS Arihant carried
out a successful launch of a SLBM on 14 October 2022. The successful user
training launch of the SLBM by INS Arihant is significant to prove crew
competency and validate the SSBN programme, a key element of India’s nuclear
deterrence capability.18
INS Arihant is a 6,000-tonne nuclear
propelled submarine with a length of 104 metres and a beam of 15 metres. It has
a range of over 700 km. Its surface speed is between 12 and 15 knots and
submerged speed is between 30 and 34 knots. It can carry 12x K-15 ballistic
missiles and 6x 533 tube torpedoes.19 It can stay deep inside the ocean making it
virtually undetectable for months. There are plans to build more
nuclear-powered submarines. Another nuclear-powered submarine the INS Arighat
is slated to be commissioned soon. Two more SSBNs are under construction.
BrahMos
Missile
The
BrahMos missile of the Indian Armed Forces is a supersonic cruise missile
developed by the DRDO and Russia’s Mashinostroyeniya. It is named after two
major rivers in India and Russia: the Brahmaputra and the Moskva. The missile
is capable of being launched from land, sea, sub-sea, and air against surface
and sea-based targets and has been long inducted by the Indian Armed Forces.
In the joint venture, the Indian side
holds a share of 50.5 per cent and the Russian side holds 49.5 per cent. The
technology used in this joint venture is based on the Russian P-800 Oniks
cruise missile and similar sea-skimming cruise missiles from Russia.
The BrahMos supersonic cruise missile
was first tested on 12 Jun 2001. Since then, it has been upgraded many times
across various platforms, that is, the sea, land, and air. When compared to
subsonic cruise missiles, BrahMos has three times the speed, and 2.5 times the
flight range. BrahMos is supersonic cruise missile that can attain a speed of
up to Mach 3, with a maximum flight range of 290 km. It is a two-stage missile
with a solid propellant booster as its first stage, which brings it to
supersonic speed and then separates. The second stage then takes the missile
closer to Mach 3 speed. Stealth technology and guidance system with advanced
embedded software provide the missile with exceptional capabilities.20 Its special features include21:
n Operations
on the principle of ‘fire and forget’, adopting varieties of flight on its way
to the target.
n Enhanced
estructive power due to the large kinetic energy on impact.
n High
supersonic speed all through the flight.
n Long
flight range with a variety of flight trajectories.
n Low
radar signature.
n Shorter
flight times leading to lower target dispersion and quicker engagement.
n Pin-point
accuracy with high lethal power.
It can carry a conventional warhead
weighing 200 to 300 kg. The missile has identical configurations for land, sea,
and sub-sea platforms and uses a Transport Launch Canister (TLC) for
transportation, storage, and launch.22
India is exporting BrahMos missiles to
the Philippines. In January 2022, the Philippines signed a $374.96-million deal
with BrahMos Aerospace Private Ltd. for the supply of a shore-based, anti-ship
variant of the BrahMos supersonic cruise missile. The contract includes
delivery of three missile batteries, training for operators and maintainers, as
well as the necessary Integrated Logistics Support (ILS) package. The coastal
defence regiment of the Philippine Marines will be the primary employer of the
missile systems. The Indian Navy trained 21 Filipino marines on the operating and
maintenance procedures of BrahMos missiles.23 Other countries, like Indonesia and Vietnam,
are also showing interest in this missile.
INS
Vikrant
The
commissioning of the aircraft carrier INS Vikrant, with its new abilities and
the fact that it was not only designed and built indigenously but also used 76
per cent Indian material, was an important landmark in the growth of indigenous
aircraft carrier production capabilities. It was built in India at a cost of
about
Rs 20,000 crore. With INS Vikrant, India joined the list of countries which
manufacture huge aircraft carriers with indigenous technology. It is an
important reflection of India becoming self-reliant in this crucial field. An
aircraft carrier is considered the most valuable sea-based asset that allows
todominate the maritime domain. It can be quickly deployed in different areas
and, thus, helps the navy establish command and control at decisive
points.
“The 262-metre-long INS Vikrant aircraft
carrier has a full displacement of close to 45,000 tonnes, which is much larger
and more advanced than its predecessor. The ship is powered by four gas
turbines totalling 88 MW and has a maximum speed of 28 knots. It has been built
with a high degree of automation for machinery operation, ship navigation and
survivability, and designed to accommodate an assortment of fixed and rotating
aircraft. The ship would be capable of operating an air wing consisting of 30
aircraft comprising MiG-29K fighter jets and Kamov-31 multi-role helicopters,
in addition to indigenously manufactured Advanced Light Helicopters (ALH) and
Light Combat Aircraft (LCA) (Navy). Using a novel aircraft-operation mode known
as Short Take-Off but Arrested Landing (STOBAR), the IAC is equipped with a
ski-jump for launching aircraft, and a set of arrester wires for their recovery
onboard”.24 INS Vikrant used indigenous equipment and
machinery supplied by India’s major industrial houses as well as over 100
MSMEs. It is the largest ship ever built-in maritime history of India and
houses state of the art automation features.
The commissioning of INS Vikrant makes
India’s maritime domain more secure. Given our dependence on the blue economy
and having three sides to the sea, maritime security for India is of paramount
importance, particularly in the present context when China is increasing its
footprint in the Indian Ocean. Control over the seas and safeguarding the sea
lanes of trade and communications are essential. With its escort ships and
fighter jets, it is a Carrier Battle Group, which means it can bring to bear
that kind of force which is mobile, potent, and self-sustaining.
LCH
Prachand
The
induction of the indigenously built LCH named Prachand into the Indian Air
Force at Jodhpur on 3 October 2022, by Shri Rajnath Singh, India’s Defence
Minister, was another landmark in the development of India’s defence production
capabilities. This helicopter fills an important need for the protection of our
assets and territory at high altitudes, like in Siachen, Daulat Beg Oldie etc.
The special characteristics of this air
vehicle make it different from other helicopters. Air Chief Marshal Chaudhari,
Chief of the Indian Air Force, stated that this LCH is either at par with or
better than similar attack helicopters available globally.25 The LCH is designed and developed indigenously
by Hindustan Aeronautics Limited (HAL). It is primarily designed for operations
at high-altitude in all-weather combat conditions. It is a multirole combat
helicopter, designed to perform various attack profiles.
‘It can fly at an altitude of 5000
metres. Its empty weight is 2250 kg and maximum take-off weight is 5800 kg. It
can carry a weapon payload of up to 1750 kg. It can take off at high altitude
with all its payloads. Its length is 15.8 m, wingspan is 4.60 m, and height is
4.70 m. It can carry two pilots. It has a top speed of 268 kmph and a maximum
range of 550 km. It is powered by two Shakti engines. Its endurance is 3 hours
and 10 minutes. Its weapons capabilities are significant. It carries 1 x 20 mm
M621 cannon on Nexter THL-20 turret, 4 × 12 FZ275 LG Rockets, 4 × 2 Mistral air
to ait missiles, 4x4 ‘Dhruvastra’ anti-tank guided missiles, cluster bombs, and
grenade launchers. It can evade detection by enemy radar and dodge incoming
missiles. It is armed with a missile approach warning system, a Saab radar
laser warning system, and chaff and flare dispensers.26
In Indian context, given the distinct
advantages of greater fire power, excellent manoeuvrability, and a higher range
of operations than other helicopters, along with stealth features, the role of
this helicopter would be critical at higher altitudes. It upgrades India’s
capability to check air and land intrusions by our enemies. While it can be
effectively deployed to deny the use of our airspace by hostile air or land
forces, it is also capable of conducting lightning air strikes to complement
the army’s offensive and defensive operations. Besides, it can also be deployed
to destroy the terrorist infrastructure behind enemy-lines. In any conflict,
the role of this helicopter will prove invaluable.
Conclusion
The
Indian defence manufacturing industry is vital not only for security of India
but also for its economy. The demand for better equipment, based on advanced
technology, is increasing as India moves towards modernising its forces. Such
demands are also increasing in other countries, which are facing threats from
bullying countries that still believe in achieving their objectives using
force. India’s threat perception of a two-front-war has risen many times in
recent years. The security of the land border and the Indian Ocean demands more
submarines, aircraft carriers, fifth-generation fighter aircraft, combat
helicopters, and super-sonic missiles.
The fundamental shifts in strategic
equations globally demand a robust defence capability to maintain India’s
strategic autonomy. The risks involved in importing defence equipment are well
known. Usually, the best technology-based weapon systems are not transferred
and if they are, the importing country remains dependent for maintenance on the
country manufacturing the system. Defence equipment imported from abroad is
susceptible to espionage and sensitive information can be leaked/stolen through
such imported systems. Domestically manufactured equipment reduces this
vulnerability. In addition, the purchase from foreign countries usually takes a
lot of time, and by the time the equipment comes, it has outdated technology.
India has done well recently to push its
defence manufacturing capabilities. The creation of two defence corridors will
evolve as hubs for the defence manufacturing industry along with private
industries linked to the defence industries, skilled manpower, start-ups, and
R&D institutions providing useful assistance. Defence indigenisation has
been extended to areas such as Innovations for Defence Excellence, which seeks
to generate innovation in aerospace and defence. Significantly, necessary
provisions to boost indigenous defence industry (68 per cent) have been made
and a Special Purpose Vehicle has been arranged in the budget. Indian Defence
Minister, Shri Rajnath Singh, has recently stated that it will establish the
role of the private industry as a partner beyond just a vendor or supplier. The
positive list is yet another excellent decision that will go a long way towards
ensuring a market for the indigenous defence industry. The fifth-generation
fighter plane is likely to be manufactured in about three-and-a-half years
while transport aircraft would start production by 2026. The exports have
substantially increased, indicating bright prospects for the Indian defence
industry. To attract investments, incentives are being given.
However, there would be key challenges
to achieving the goals. First, investors’ interests will have to be protected
to ensure their continued support to the defence industry. The long-term
challenge for India is to ensure deep and sustained investments in defence
R&D. Increase in exports of indigenous weapons constitute an essential
aspect for attracting investments. The government’s decision to deploy defence
attachés in the target counties is an excellent proposal, but they will require
the whole of government support, including diplomatic missions and intelligence
agencies to achieve the objective. Second, the start-ups and private players
will need to be given sufficient assistance and assurance.
Third, it is important to ensure the
quality of the products and induction of the latest technology to produce
world-class equipment. The lessons from the Ukraine-Russia conflict need to be
internalised. The drones are playing an important role, hence, greater emphasis
is needed on this dimension. While research in AI is in focus, it must be
pursued with greater vigour. India has an agreement with the US on critical and
emerging technologies. It is essential to ensure that India gets the advanced
technology it needs. The India-US Defence Policy Group keeps meeting and
efforts are being made to enhance defence industrial cooperation and
operationalise the India-US Major Defence Partnership. These must be actualised
soon to achieve the desired results.
Fourth, the production will have to be
accelerated to ensure timely delivery. Fifth, at present, some parts are
imported for our products. India needs to have a defence industrial ecosystem
that can meet the requirements of the Indian Armed Forces. These demand a
greater push in the direction of Atmanirbharta, particularly when the
security environment is deteriorating, causing not only security challenges but
also economic problems.
Endnotes
1 https://pib.gov.in/PressReleasePage.aspx?PRID=1870082.
2 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1912885.
3 https://www.makeinindia.com/sector/defence-manufacturing.
4 Ibid.
5 Ibid.
6 Ibid.
7 Ibid.
8 https://www.mod.gov.in/sites/default/files/pre2_1.pdf.
9 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1848671.
10 https://www.business-standard.com/article/current-affairs/drdo-developing-critical-defence-components-indigenously-chairman-123021402253_1.html.
11 https://www.msn.com/en-in/news/other/drdo-begins-work-on-new-weapon-systems-like-laser-beams-and-high-power-microwaves/ar-AA1bFIu0?ocid=msedgdhp&pc=U531&cvid=46a4fa714e57456681f50b00d
7ded942&ei=21.
12 https://indiaai.gov.in/news/critical-and-emerging-technology-icet-an-india-us-initiative-to-elevate-technology-partnership.
13 https://mea.gov.in/Portal/ForeignRelation/Bilateral_Brief_Paris_Apr_
2018.pdf.
14 Critical and
emerging technology, loc.cit.
15 Ibid.
16 https://brahmos.com/pressRelease.php?id=105.
17 https://newsonair.gov.in/News?title=PM-Modi-says-success-of-indigenous-nuclear-submarine-INS-Arihant-gives-fitting-response-to-those-who-indulge-in-nuclear-blackmail&id=354960.
18 https://pib.gov.in/PressReleasePage.aspx?PRID=1867778.
19 http://www.military-today.com/navy/arihant_class.htm.
20 https://www.brahmos.com/content.php?id=10&sid=10.
21 Ibid.
22 Ibid.
23 https://www.marineinsight.com/shipping-news/21-philippine-marines-complete-brahmos-training-in-india-amidst-filipino-chinese-tensions/.
24 https://pib.gov.in/FeaturesDeatils.aspx?NoteId=151135&ModuleId%
20=%202.
25 https://www.airforce-technology.com/news/indian-light-combat-helicopter-prachanda/.
26 https://www.aviation-defence-universe.com/iaf-inducts-light-combat-helicopterlch-prachand-into-its-fleet/.
@Dr S D Pradhan is a Former Deputy
National Security Advisor.
Journal
of the United Service Institution of India, Vol. CLIII,
No. 633, July-September 2023.