Sansad TV Perspective: India’s Defence Exports

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: ‘India’s Defence Exports’.

Anchor: Vishal Dahiya

Participants: 

• Sunil Mishra, DG, SIDM
• Ajay Banerjee, Sr Defence Journalist
• Dr Rajiv Nayan, Senior Fellow, MPIDSA

Context: India’s defence exports have reached an all-time high in FY 2022-23.

Highlights of the discussion: 

1. Introduction
2. Government policies
3. Major Exports
4. Role of Private Sector
5. Way Forward

Introduction:

• India’s defence industry has been expanding rapidly in recent years, with a particular focus on defence exports. 
• The country has made significant strides in defence production and research and development, resulting in a range of advanced and sophisticated defence equipment and technologies.
• India’s defence exports have reached an all-time high of Rs 15, 920 crore in FY 2022-2023.
• In the last few years, the government has taken a series of measures to promote domestic defence production and boost defence exports.

Image Source: Ministry of Defence

Government policies:

• The Union government has been taking several efforts and initiatives to make India a hub for defence exports. 
• Launched in 2014, the Make in India initiative aims to transform India into a global manufacturing hub. 
  • The initiative encourages domestic production, reduces imports, and promotes exports, including in the defence sector. It provides incentives and support to companies that manufacture in India and export their products.
• The Defence Export Promotion Policy (DEPP) was launched in 2018 to promote defence exports from India. It provides a framework for the promotion and export of defence products and services. 
  • The policy aims to simplify export procedures, enhance the ease of doing business, and create a favourable environment for defence exports
• The Defence Production and Export Promotion Policy (DPEPP) was launched in 2020 to boost defence production and exports from India. The policy aims to achieve a turnover of $25 billion in defence manufacturing by 2025, including a target of $5 billion in defence exports. 
  • The policy includes measures such as promoting indigenous design and development, increasing foreign direct investment, and promoting exports.
• Defence Technology and Trade Initiative (DTTI) is a joint initiative between India and the United States to promote defence technology cooperation and trade. 
  • The initiative aims to identify areas of mutual interest, facilitate collaboration between defence industries in India and the US, and promote exports of defence products and technologies.
• Defence Innovation Organization (DIO) was launched in 2018 to promote innovation in the defence sector. T
  • The organisation aims to support startups and innovators in the defence sector by providing funding, mentoring, and other support. The DIO also aims to foster collaboration between the private sector, academia, and the defence industry.
• The Indian government has established two defence industrial corridors, one in Uttar Pradesh and the other in Tamil Nadu. 
  • The corridors aim to create an ecosystem for defence manufacturing and promote exports. The corridors provide infrastructure, facilities, and incentives to defence manufacturing companies.
• The Indian government has increased the FDI limit in the defence sector to 74%, which has encouraged foreign investment in the sector. This has led to the establishment of joint ventures between Indian and foreign companies, which have contributed to defence exports.\

Major Exports:

• India has exported BrahMos cruise missiles to countries like Vietnam, the Philippines, and Indonesia.
• The Dhruv helicopter is a multi-role helicopter developed by Hindustan Aeronautics Limited (HAL). It has been exported to several countries, including Nepal, Maldives, Ecuador, and Peru. 
• The Akash missile system is a surface-to-air missile system developed by the Defense Research and Development Organization (DRDO) of India. It has been exported to countries like Vietnam and Oman. 
• India has exported sonar systems to several countries, including Vietnam and Myanmar. 
• India has exported bulletproof jackets to several countries, including Nepal, UAE, and Malaysia. These jackets are used by military and law enforcement agencies to protect their personnel from gunfire and shrapnel.
• India has exported T-90 tanks to several countries, including Algeria and Turkmenistan. The T-90 is a main battle tank that is capable of operating in a variety of environments.
• Other major defence equipment exported during last 05 years include Weapon Simulators, Tear Gas Launcher, Torpedo Loading Mechanism, Alarm Monitoring & Control, Night Vision Monocular & Binocular, Light Weight Torpedo & Fire Control Systems, Armoured Protection Vehicle, Weapons Locating Radar, HF Radio, Coastal Surveillance Radar etc.

Role of Private Sector:

• Several private companies in India have invested in research and development to develop cutting-edge defence technologies. 
  • For example, Tata Advanced Systems has established a research and development centre in Hyderabad, which focuses on developing technologies for the aerospace and defence sectors. 
• Private companies in India have collaborated with international companies to develop defence products and technologies. 
  • For example, Bharat Forge has collaborated with the US-based AM General to develop high-mobility multipurpose wheeled vehicles (Humvees) for the Indian Army. 
  • Similarly, Mahindra Defence Systems has partnered with the Swedish company Saab to manufacture fighter jets in India.
• Private companies in India have also been actively exporting defence products to other countries. 
  • For example, Bharat Forge has exported artillery systems to several countries, including the United States.
• Private companies in India have also invested in infrastructure to support defence manufacturing and exports. 
  • For instance, Reliance Infrastructure has established a defence manufacturing facility in Nagpur, which is focused on manufacturing aerospace components.
• Private companies in India have also established joint ventures with foreign companies to manufacture defence products in India. 
  • For example, Tata Lockheed Martin Aerostructures Limited is a joint venture between Tata Advanced Systems and Lockheed Martin, which is focused on manufacturing aerospace components in India. 

Way Forward:

• India needs to develop world-class defence manufacturing infrastructure to compete with other major players in the global defence market. The government needs to provide incentives to encourage private sector investment in defence manufacturing and R&D. This can be achieved by creating special economic zones or industrial parks dedicated to defence manufacturing.
• The government must focus on setting up research institutions and incubators for startups in the defence sector.
• Government can also provide tax breaks, low-interest loans, and other financial incentives to companies that export defence products and services to promote exports.
• India has a large pool of talented engineers and scientists, but there is a shortage of skilled workers in the defence sector. The government needs to invest in training programs and skill development initiatives to create a skilled workforce for the defence sector. 
  • This can be done by setting up training centres and vocational institutes focused on defence manufacturing.
• India should leverage its strong relationships with countries in South Asia, Southeast Asia, Africa, and the Middle East to promote defence exports. The government should also seek to establish partnerships with major defence manufacturers in other countries to develop joint defence products and services.
• The government should work to build a strong supply chain by creating clusters of defence manufacturers and suppliers. 
• India must focus on marketing and branding to become a hub of defence exports. This can be done through targeted marketing campaigns, participation in defence trade shows and exhibitions, and other promotional activities.

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

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