Sansad TV Perspective: DefExpo 2022 - Path to Pride

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: DefExpo 2022 – Path to Pride

Anchor – Teena Jha

Participants:

1. S.P. Shukla, Chairman, Mahindra Defence Systems & Mahindra Aerospace
2. Major General (Retd.) Jagatbir Singh, Distinguished Fellow, United Service Institution of India
3. Sunil Mishra, Director General, Society of Indian Defence Manufacturers

Highlights of the Discussion: 

• Introduction to DefExpo 2022.
• Growth of India’s defence manufacturing and exports.
• Significance of DefExpo towards making India Atma Nirbhar in defence.
• Challenges in Domestic Defence manufacturing.

Context: Prime Minister Narendra Modi inaugurated ‘DefExpo 2022’ in Gandhinagar, Gujarat in Oct 2022.

Introduction: 

• The 12th edition of DefExpo-2022, on Land, Naval & Homeland Security Systems Exhibition is taking place at Gandhinagar, Gujarat, India. 
• DefExpo is a flagship biennial event of the Ministry of Defence, showcasing the land, naval, air as well as homeland security systems.

DefExpo 2022:

• The theme for the DefExpo 2022 is ‘Path to Pride’, which is in line with India’s vision towards Atmanirbhar Bharat.
• The event involves live demonstrations showcasing the equipment and skills of the Armed Forces, Defence Public Sector Undertakings (DPSUs), and private entities.
  • This will showcase the growing strength of the domestic defence industry, which is one of the major drivers of the nation’s resolve to achieve ‘Make in India, Make for the World’ as envisioned by the Prime Minister of India.
• The event has been organised to support, showcase and forge partnerships for the Indian aerospace and defence manufacturing sectors with Indian as well as global customers to achieve the overall objective of catering to domestic requirements while fulfilling the needs of friendly foreign countries. 
  • DefExpo 2022 is the first-ever edition exclusively for Indian companies. Indian companies, Indian subsidiaries of Foreign OEMs, Division of companies registered in India, and Exhibitors having Joint Venture with an Indian company will be considered as Indian participants.
  • However, foreign companies are invited to conduct seminars and meetings during the show, including the one in which they will be invited to invest in Indian startups and companies.
  • Seventy-five countries are participating in DefExpo 2022.
• The India Pavilion – a pavilion of the Department of Defence Production – will showcase the maturity of indigenous defence products, start-ups and the latest technology, including Artificial Intelligence in defence, while presenting India’s vision for 2047.
• For the first time, states and union territories will be setting up pavilions during the event.
• The event will also include the hosting of the 2nd edition of the India-Africa Defence Dialogue, which will witness the participation of defence ministers of various African countries.
• A separate Indian Ocean Region (IOR) plus conclave will also be organised.
  • The focus of DefExpo 2022 is to promote defence exports to countries in Africa and IOR.

Growth of India’s defence manufacturing and exports: 

• In the past few years, the Union government has taken various policy initiatives to encourage indigenous manufacturing of defence equipment, thereby promoting self-reliance in defence manufacturing & technology.
• Several initiatives include priority to the procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020, the announcement of 18 major defence platforms for industry-led design and development, liberalisation of foreign direct investment (FDI) policy allowing 74% investment under the automatic route, among several others.
• To eliminate the dependency on foreign industry, promote and nurture Indian Indian industries, build the capability of tri-services and in turn grow the Indian economy, the Government of India came up with the Technology Development Fund (TDF) scheme. 
• To minimise import by Defence Public Sector Undertakings (DPSUs), the Department of Defence Production (DDP) has notified three Positive Indigenisation Lists (PIL) of components.
• Strategic defence products including Light Tanks, Helicopters, and Unmanned Aerial Vehicles are part of the indigenous list for which there would be an embargo on the import beyond the timelines indicated against them.
• Two defence industrial corridors have been established — one each in Uttar Pradesh and Tamil Nadu to bolster indigenous manufacturing.
• The Union government is providing financial support to 300 MSMEs, startups and innovators, and 20 partner incubators. It also goes a long way in supporting a growing synergy between India’s innovators, the defence manufacturing industry and the country’s defence needs.
• Simplification of the process of obtaining a licence, the launch of the Innovations for Defence Excellence (iDEX) initiative and enhanced use of Artificial Intelligence in the defence sector have bolstered the goal to achieve self-reliance.

Significance of DefExpo towards making India Atma Nirbhar in defence:

• At the Expo, Prime Minister Modi set a target of 40,000 crore rupees in annual defence exports, representing a nearly three-fold jump from 13,000 crore rupees in FY22. 
• Defence Expo is aiding India’s ambitions to become a defence manufacturing hub and make India an attractive destination for global private defence manufacturers.
•  DefExpo is a unique platform to attract investments and showcase defence products.
  • The Union Budget 2022-23 has a major focus of the government towards modernization of Indian Defence Industries, support for indigenous design, and development and production of defence inventories. 
  • To realise these objectives, a commitment has been made by the government to ensure 68% of total capital procurement in the defence sector from the domestic market and 25% of the R&D budget of defence toward research through Indian entities.
  • India plans to export $ 15 billion worth of equipment in the next five years. Fittingly, the government has turned its attention to domestic startups, MSMEs and individual innovators.
• The decision of the Indian defence forces to buy a majority of the equipment made in the country shows the capacity of the ‘Atmanirbhar Bharat’, said Prime Minister Narendra Modi while inaugurating the Defence Expo 2022.
• The Expo has more than 1,300 exhibitors from the Indian defence industry, along with some joint ventures with foreign original equipment manufacturers.
• Engaging with our partner countries through forums like IOR Plus Defence Ministers’ Conclave, DefExpo helps to create a better global order accommodative to India’s interest.
• Self-reliance in defence manufacturing is a crucial component for improving defence capability, maintaining national sovereignty and achieving military superiority. 

Challenges in achieving Self-reliance:

• Lack of growth in defence modernisation and defence capabilities.
• Production and Time Delays:  The Indian government has approved over 200 defence procurement bids for over Rs 4 trillion over the last five years, but the majority of these are still in the very early phases of processing.
• Budgetary issues: A lack of capital expenditure on domestic defence production, and research and development has been a significant barrier to India’s self-reliance ambitions. 
  • Although India’s defence budget has grown over the years, a sizable portion of that budget is spent on personnel expenses like wages and pensions, which reduces the amount of money available for defence manufacturing.
• Lack of trust in the private sector: Governments usually have tended to privilege Defence Public Sector Units (DPSUs) over the private sector, despite ‘Make in India’.
  • The government ought to think about assisting the Indian private sector and entrusting it with more substantial and reliable defence contracts.
  • For India to increase its defence output, it is essential to support the private sector’s R&D, design, and manufacturing skills.
• Poor Manufacturing Environment: Lack of skills, burdensome compliance requirements, and strict labour laws all have an impact on the growth of domestic defence production.

Conclusion: Various steps taken by the union government attest to India’s ability to attain the vision of an ‘Atmanirbhar Bharat’. India has sought to be self-sufficient in the production of defence equipment and to meet its own defence requirements ever since it became an independent country. This objective can be accomplished under these ambitious plans sooner rather than later.

Read all the previous Sansad TV Perspective articles in the link.

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